Business Review Europe and Middle East Magazine - January 2016 by Business Chief Europe

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EDITOR’S COMMENT

Growth plan W E L C O M E T O T H E J A N U A R Y 2016 issue of

Business Review Europe and Middle East. In this issue, we’re looking ahead to what is in store for businesses in 2016, focusing on how SMEs now have more options for expansion thanks to the democratisation of advertising. Furthermore, we’re covering the crucial role that design can play for all companies looking to grow. Growth is also the subject of our exclusive interview with Telefonica UK’s CIO, Brendan O’Rourke, who talks about how O2’s innovation lab is helping the telecoms provider stay ahead of the game. Other highlights in this issue include an interview with Marafeq Qatar, which is working on the groundbreaking Lusail City construction project. We also talk to Forthnet, Greece’s leading pay-TV and entertainment company. We do hope you enjoy the features, please send us your feedback on Twitter @BizReviewEurope and @BusinessRevME Enjoy the issue!

Lucy Dixon Managing Editor EMEA lucy.dixon@wdmgroup.com 3

CONTENTS

Features

FINANCE

IS YOU BUSINESS READY FOR 2016?

TECHNOLOGY

Democratisation of advertising

January 2016

MARKETING

Growth by design

Company Profiles TECHNOLOGY 26 Telefonica UK 58 Met Office

Met Office

78 Forthnet 92 Midwam Edutainment 106 ThoughtWorks

ENERGY 118 Arabian Geophysical & Surveying Company (ARGAS) 138 AFI (Alaa For Industry)

274 184

184 Marafeq Qatar 196 GCC Interconnection Authority 212 ADC Energy Systems

138

224 Weir Oil & Gas Services

SUPPLY CHAIN

MANUFACTURING 262 Halwani Brothers

Marafeq Qatar

162 Jubail Energy Services (JESCO)

236 Saudi Arabian Airlines

Forthnet

Mineco

AFI (Alaa For Industry)

Telefonica UK

MINING 274 Mineco

FINANCE

Is your business rea

As we head into 2016, we three concerns currently f W r i t t e n b y : J O H N O â&#x20AC;&#x2122; K E E F F E , V P E M E A AT N I T R O

ady for 2016?

take a look at the top facing business leaders 7

FINANCE OUTSIDE OF THE day-to-day tasks of management, business leaders must also focus on the wider values that their business works towards: things like how their company exists within the environment, or how they protect their clients from security breaches. At Nitro we think these values are too important to be compromised simply because there’s not enough time in the day. In this article, we’ll explore what we see as the three biggest priorities for businesses in 2016, and how next year’s leaders can improve practices and workflows in an efficient way. 1. Security According to a recent IDC study, over half (54 percent) of workers have discovered that their organisation is exposed to significant risk due to stored company content that is not correctly tagged and identified, leading to access issues. In addition, a surprising 90 percent of US companies have experienced data leakage or loss of sensitive or confidential documents in the past. With 61 percent of data breaches involving paper records, companies are well aware of the need to move to 8

January 2016

a more secure solution for document management. Indeed, according to a recent Nitro survey security topped the list of considerations for IT managers for 2016, with 47 percent of managers citing it as their key priority. Despite this, 77 percent of organisations admit to not providing a secure document sharing solution: a large proportion of businesses, especially SMEs, rely on email attachments and USB drives to handle documents, scarcely more secure than the paper they replace. In the coming 12 months companies should invest in tools which combine ease of use with safety. It needn’t be an either/or scenario: there are

‘According to Nitro’s research, increasing employee productivity is an important target for IT departments in 2016, with 68 percent of IT managers stating it as one of their key goals’

IS YOUR BUSINESS READY FOR 2016?

tools on the market that enable you to track a document through its entire lifecycle, ensuring the right people see it at the right time. 2. Speed and productivity Document challenges are robbing organisations of 21 percent of their overall productivity, according to a recent report from the IDC. When broken down to an individual productivity cost, this works out as a staggering £15,000 per person per year. As any office worker will be able to tell you, email attachments are a source of great annoyance and lost

productivity in the workplace. Almost half (48 percent) of workers have reportedly emailed the wrong version of a file to a colleague or client, while 81 percent have found themselves working on the wrong version of a file. According to Nitro’s research, increasing employee productivity is an important target for IT departments in 2016, with 68 percent of IT managers stating it as one of their key goals. And with 91 percent of IT professionals surveyed by Nitro using printing and scanning as a primary content management tool, and with 74 percent of knowledge workers lacking access to a PDF editor, it’s

FINANCE clear that easy improvements can be made to digital productivity in 2016. 3. Sustainability Sustainable living in your personal life is something that has been in vogue for a number of years, with electric cars and renewable energy regularly making headlines. However, corporate sustainability is another matter. Corporate sustainability generally falls into two areas: reducing energy use and reducing waste (and therefore costs). Both of these factors are directly affected

January 2016

by document management practices in the workplace. A recent McKinsey survey placed sustainability as a top priority for CEOs with 49 percent classifying it as a top three initiative and 13 percent classifying it as their number one initiative so anyone in a management position should become familiar with practices to improve sustainability. As already mentioned, a surprising portion of professionals use the archaic cycle of printing, signing, scanning and email attachments as a document management process.

IS YOUR BUSINESS READY FOR 2016?

‘With 61 percent of data breaches involving paper records, companies are well aware of the need to move to a more secure solution for document management’ John O’Keeffe According to Nitro’s recent survey, this looks set to change in 2016: an equal portion of IT professionals rated remote accessibility and sustainability with equal importance for their content management priorities next year (38 percent of those surveyed put each as their top priority). What’s significant here is that reduced paper usage is the key factor in both cases: and with 45 percent of paper printed each day ending up in the bin, decreased reliance on paper records will benefit the environment

as well as corporate efficiency. Unless given the right tools to digitally manage documents, employees will default to printing: it’s therefore important that document processes are introduced and implemented from the top down, and employees are given the tools they need to overcome each of these three barriers. Significant change can’t be made overnight, but as managers prepare for the new year it’s clear that these are the priorities they should be working toward. 11

TECHNOLOGY

Democratisation of advertising 12

January 2016

How technology is bringing big brand advertising to SMEs Writ ten by: Ro b B l a ke, G e n e r a l M a n a g e r E M E A a t m o b i l e p r og r a m m a t i c c o m p a ny Poc ke t m a t h 13

TECHNOLOGY ADVERTISING HAS COME a long way since the days of Madison Avenue three-martini lunches. The heyday of TV advertising, which lasted for most of the late twentieth century, has given way to a fast-paced, digital world. In 2016, advertising campaigns are distributed globally, targeted directly at prime customers and optimised instantaneously based on real-time feedback. It’s a far cry from TV’s Mad Men. The influence of adtech has been so central to the industry that, of the £16.2 billion the UK was forecast to spend on advertising in 2015, more than half was spent on digital media. The capabilities afforded by adtech, from measurable ROI to advanced targeting based on demographics, media type, interests and location, are also driving a boom in advertising more generally. 2015 was forecast to see $540 billion of ad spend globally, an increase of 4.6 percent on 2014. Too small to compete? Despite all of these developments – in targeting, relevance to the consumer and the channels through which brands can get their message out – advertising still remains largely the 14

January 2016

preserve of major brands. The same calibre of super-brands that hunted out killer creative in the meeting rooms of Madison Avenue remain the only companies with the necessary budget and expertise to realise the full potential of the technologies now available, by making programmatic advertising and ROI tie up. The biggest development in the industry in the past hundred years might in fact be one that hasn’t happened yet. The advertising sector is on the cusp of achieving the so-called ‘democratisation of advertising’ to all companies, however big or small. In practice, this means enabling digital advertising campaigns to happen across all budgets, where non-specialist managers can build scalable ad campaigns and compete for business with the same tools as their larger competitors. The next step for adtech is to turn these advanced, complex functions into simplified, user-friendly processes that allow non-experts to use them directly, and to great effect. Whatever the business’s size, there will be advertising options available that can deliver the same powerful results on an entirely scalable basis.

D E M O C R AT I S AT I O N O F A D V E R T I S I N G

â&#x20AC;&#x2DC;Through the democratisation of digital advertising, one of the primary barriers to growth for small companies will have been liftedâ&#x20AC;&#x2122;

TECHNOLOGY Removing the barriers to growth This is an exciting prospect for all business, and as with any major operational shift will see a collection of early adopters followed by a wave of enthusiasts. Through the democratisation of digital advertising, one of the primary barriers to growth for small companies will have been lifted, giving even the proverbial ‘shop around the corner’ the ability to raise awareness among its own target customer group. For these small, hyper-local companies the imminent availability of advertising is particularly well timed, given that mobile has risen to a position of dominance over consumer viewing habits. The geographical aspect of mobile, allowing people to be targeted based on their location, as well as demographics and interests, means that positive ROI will be available no matter what definition of ‘local’ companies are using. Advertising that grows with the business Simplifying the tools that owner managers and small business teams need, and enabling these people to use programmatic advertising and real-time 16

January 2016

bidding, also requires simplifying the strategy that underlies their decisionmaking. Advertising, like any other marketing discipline, should always be driven by the company’s growth imperatives rather than technical know-how, but that’s not yet the case. By simplifying the technology, the next generation of entrepreneurs will be able to take nothing more than outsourced creative and a small marketing budget and put their message directly into the pocket of anyone they deem to be a potential customer. That could be the person walking past their shop, or the person who just searched Google for the product or service they sell. Moreover, based on the accelerated growth and new business potential that a complete array of marketing tools will offer, and the scalable nature of mobile advertising, adspend will be able to grow in line with the business’s ability to deliver. Ultimately, this means that whatever the objective, and whatever the business size, digital advertising will have a solution that offers both clear ROI and complete transparency to the business user, no matter what their level of expertise.

D E M O C R AT I S AT I O N O F A D V E R T I S I N G

‘Building a user interface that allows business professionals of all disciplines to run complicated ad campaigns with just a few clicks is the very next step’

Turning theory into reality Having 24/7 access to the modern equivalent of a Madison Avenue ‘Mad Man’, at a price that allows you to get started with whatever budget is available, is an amazing prospect for a small business owner. But how far in the future is it really, and what will it take to make that vision a reality? The answer is that it could be as soon as this year. The technology being used by big brands today is no longer steeped in the complexities that it was when programmatic first appeared in the advertising armoury. Building a user interface that allows business professionals of all disciplines to run complicated ad campaigns with just a few clicks is the very next step, and a handful of small businesses are actually already contributing to its development. In the future, businesses of all sizes will be able to get out more than they put in, not just in revenue terms, but also time and expertise. As technology advances ever further, including through the growth of smartphone technology, wearable technology, the internet of things and a higher level of global connectivity, the massmarket offering will become a core component of the advertising sector. 17

GROWTH B

Research suggests that the use of design is linke

MARKETING

BY DESIGN

ed to increased company turnover and innovation W r i t t e n b y: A n n a b e l l a C o l d r i c k

MARKETING THE EUROPEAN COMMISSION has now published the results of the Innobarometer, its annual survey into business innovation. For the first time, the 2015 survey included a question on the use of design. Some 14,118 businesses were surveyed in February of this year, covering all 28 EU Member States, Switzerland and the US. Companies were asked: “Which of the following statements best describes the activities of your company with regard to design?” They were then asked to choose from six options ranging from ’design is a central element in the company’s strategy’ through to ‘design is not used in the company’. The good news is that more than six in ten European companies are using design in some way. 13 percent say design is a central element of their company’s strategy, while 18 percent say design is an integral element of their development work. Disappointingly, the most common response, by 38 percent of

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companies, is that design is not used. At the Design for Europe summit in May this year, Anne Stenros, Design Director of KONE, the Finnish lift manufacturer outlined how European firms could be missing out by not using design: “The latest studies in US show that those companies that

‘The very positive news is that companies who innovate are more likely to say they work systematically with design’ 20

January 2016

GROWTH BY DESIGN

isting technology that opens up a world of possibilities in high-rise building design.

have use design in a strategic way over the past ten years, have seen their value increased by 228 percent. The power of design is enormous and maybe in Europe we haven’t realised that as clearly as the companies in the US, so it’s time to wake up.” The results of the Innobarometer are interesting but also potentially pose some questions about how the word ‘design’ is understood differently across the EU28. According to the responses the Greeks (48 percent)

and Cypriots (41 percent) are the most likely to be using design as part of their company’s strategy (although this may be due to the similarity of the word ‘design’ to ‘plan’ in Greek,), followed next by the UK (22 percent). However only 4 percent of companies in Slovenia and 5 percent in Latvia say design is central to their business. Ineke Dezentjé Hamming-Bluemink, President of employers’ organisation FME-Dutch believes this needs to change: “Design is the driver for 21

MARKETING

CASE STUDY: CIMBRIA HERNING A good example of an SME using design to innovate and grow is Danish manufacturer Cimbria, one of the world leaders in the processing, handling and storage of grain and seed and increasingly other products. The business invested €33,000 over six months to work with a professional designer to transform its core product, the Moduflex loading chute, giving it a dramatically more streamlined and marketable appearance. The designer also organised its entire product line into a modular system, with new brochures that allowed customers to combine elements to build solutions to exactly meet their needs. Within the first year, the company, that previously was posting a €1.2 million annual loss, had achieved €0.5 million profit, rising to €1 million the second year. As a result of the design investment, Cimbria Herning has been able to establish itself as the market leader, not just domestically but globally, with the percentage of products sold for export rising from 60 to 90 percent.

The Moduflex S300 loading chute

“Design has helped secure Cimbria a strong position in the international market. We believe it’s also what will future-proof our product and our market position” – L A RS N Ø RG A A RD, FORMER M A N AGING DIRECTOR , CIMBRIA HERNING

January 2016

GROWTH BY DESIGN

innovation. It is of the greatest importance because what the market is asking now from companies is customised production. It is a user-centric revolution.â&#x20AC;? The survey also highlighted interesting differences that correspond to the size of the company responding â&#x20AC;&#x201C; the larger the company, the more likely it is to say design is central to their business. This illustrates how important it is to ensure that small and mediumsized businesses are also able to access design support. And this is why the EU is funding the Design for Europe programme to help raise awareness of the value of design. Companies in primary industries

(such as energy generation, raw materials production) are the most likely to say design is not used, but as we move into the manufacturing sector, 28 percent of companies say design is integral or central. This may be linked to the degree in which manufacturing companies deal directly with the consumer and therefore see the more immediate and obvious benefits of design. Indeed, at a recent event hosted 23

MARKETING by the European Manufacturing Forum in cooperation with Design for Europe and chaired by Christian Ehler MEP, manufacturing companies discussed how their use of design drives innovation. Speaking at the event, Luke Logan, Executive Vice President Engineering & Technology at Rolls Royce claimed: “Great design capability is at the heart of our ability to innovate. We know that we must continually improve to survive and prosper.” His comments were echoed by Anthea McIntyre MEP, who outlined

January 2016

how: “Innovation and design are key to how European manufacturing can succeed in the global race.” The age of the company also seems to be a factor in their use of design, with newer companies more likely to say design is used. This could be explained by the central role digital design now plays in many start-ups. Design Council’s latest research into the Design Economy in the UK shows that nearly 40 percent of the £72. billion of GVA contributed by design is from the digital sector and this is the

GROWTH BY DESIGN

fastest growing part of the economy. The very positive news is that companies who innovate are more likely to say they work systematically with design. Filip Geerts, Director General of CECIMO, the European Association of the Machine Tool Industries which is currently focusing on the potential of additive manufacturing said: “Designers and engineers will be the ones to drive innovation and growth in European manufacturing”. The survey also showed that companies whose turnover has

‘The survey also showed that companies whose turnover has increased are more likely to have used design than those whose turnover has decreased’

increased are more likely to have used design than those whose turnover has decreased. This reflects the findings of other studies showing the financial benefits of investing in design including Eden Partners’ evaluation of Design Council’s Designing Demand programme. The Innobarometer’s design question was based on the Danish Design Ladder developed by Design for Europe partner the Danish Design Centre. The Design Ladder sets out how companies integrate design – from styling to process andßß strategy. It illustrates how differently design is perceived across Europe, and the critical role that Design for Europe can play by increasing awareness of the benefits of design innovation in business. This is particularly necessary for smaller companies where the benefits of design may not be immediately obvious. For the full results and company breakdown you can read the full Innobarometer report on the EC website. To learn more about how you can use design in your company and reach out to a community of designers, business and policy makers visit DesignforEurope.eu 25

Differentiation and change Written by: John Oâ&#x20AC;&#x2122;Hanlon Produced by: Kiron Chavda

TELEFÓNICA UK

Telefónica UK, operates under one of the most popular and successful consumer brands in the UK – O2, is evolving. But whatever the future holds, that future will be shaped, and increasingly led, by IT: we speak to CIO Brendan O’Rourke about this trend

Brendan O’Rourke, Telefónica UK’s CIO

January 2016

t can’t have been easy for Telefónica’s UK business to stay focused over the last six months or so since the announcement that it was to be acquired by CK Hutchison. However, its leadership team’s priority has been to continue looking after customers, delivering the very best experience that they have come to expect from O2. We have written recently about Telefónica’s proposed shared services model for all its operating businessess, centralising in what the Global CIO Phil Jordan described as a “whole new era of full stack, business-led IT transformations.” The UK business had been in preparation for eight months when, with the impending divestment added to the sale of the Czech,

Slovak and Irish businesses and merger of the German business with E-Plus and its flotation, put an end to Telefónica Global Technology in Europe. However O2 has not been diverted says O’Rourke. “We have done a particularly good job in the IT team in keeping the focus on the here and now.” This is borne out by the fact that it has done better financially in the last year than in the preceding six years, and O2 is now a leading digital communications company with the highest customer satisfaction with customer service for any mobile provider according to Ofcom. “We believe the opportunity that technology gives people is massive and that people’s potential is not just a business issue but a social and societal issue that we want to

OFCOM praises O2 for providing the highest customer satisfaction for any mobile provider

w w w. o 2 . c o . u k

Telefonica and IBM Driving the IT Journey … IBM is proud to partner with Telefonica to provide post-pay billing systems and services such as rating and mediation, customer care and access control technologies that ensure data remains secure. The original outsourcing contract was signed in 2002, and is now entering its 14th year. Over that time the pace of change in the industry has accelerated beyond all expectations, and shows no sign of abating. Systems originally designed to accommodate 1-2 million subscribers now handle in excess of 11 million accounts and regularly rate over 20 million events per hour. IBM's systems are responsible for billing in excess of £3 billion each year, representing over 60% of Telefónica’s UK revenues. To deliver this we have around 250 professionals from 13 of IBMs global locations. Most of the teams are based in either Hursley, near Winchester or in Bangalore and their combined knowledge and experience of the solution, of our customers' challenges, and of the global Telco sector is considerable. IBM recognises just how critical our contract is to Telefonica, and we reflect this in our approach to delivering projects and maintaining service. Attention to detail, building and developing the expertise of our teams, and an maintaining an ethos of continuous improvement to enhance resilience or reduce costs lies at the heart of our operations. Many of the initiatives that drive these outcomes are generated through online innovation jamsessions. These are a platform for suggestions to be posted and discussed - making sure everyone's voice can be heard and their ideas shared. It's a great mechanism to pool expertise and share knowledge across a global team.

To put structure around the improvement programme, Telefónica and IBM have embedded a Value Generation Board to formalise the ideas. A Telefonica spokesperson described the process: “Ideas springing out of the Value Generation Board are presented on vision cards to senior executives and analysed by Telefónica commercially, leading to a constant flow of technical and business enhancements throughout the company,”

IBM is also introducing new DevOps tools to make dramatic efficiency improvements and automate a number of previously manual activities. This has reduced human error and made the process of implementing change faster and more reliable. The team is currently approaching 1000 consecutive successfully implemented changes over a 250 period - a fantastic achievement in such a complex environment. This application of the IBM DevOps Toolkit to support Telefonica is the first in the UK. New Mobile applications are being built on the Bluemix platform, hosted on Softlayer. Testing services have been transformed with Greenhat. Programme control has never been better since the Rational toolset was implemented, and scheduling and deployment of changes are then managed using Urban Code. Our team continues to be highly motivated, enthusiastic and keen to be engaged in the programme. If you would like to learn more about IBM’s DevOps capabilities please visit: http://www.ibm.com/ibm/devops/us/en/index.html

The right partner for a changing world At IBM, we collaborate with our clients, bringing together business insight, advanced research and technology to give them a distinct advantage in today’s rapidly changing environment. Through our integrated approach to business design and execution, we help turn strategies into action. With expertise in 17 industries and global capabilities that span 170 countries, we can help clients anticipate change and profit from new opportunities The mobile telecoms industry faces an enormous challenge.‘Over-the-top’ operators provide instant messaging, calls, mapping, music and video, consuming massive bandwidth and increasing carrier costs. So how do companies overcome this ‘Operator’s Dilemma'? Stepping up the value chain into advanced, highervalue services has to be the answer – addressing ‘connectedness’; being relevant to consumers, and generating truly personalised experiences. The key lies in recognising that this journey is not just about ‘being a digital Telco' – we are now entering the cognitive era. All businesses in the future will use applications that ‘learn’. Using the technologies originally developed for IBM’s Watson five years ago, ‘learning applications’ are already available to deliver true ‘personalisation’, and as individual tastes change, so the apps will use the plethora of structured and unstructured data out there to learn about personal preferences, simplify engagement processes and shaping experiences. The power of these cognitive technologies has been demonstrated in much more profound applications, such as solving water shortage problems in Africa, and saving cancer patients in the USA. Now is the time to bring this capability into mainstream technology. If you would like to learn more about IBM’s Cognitive Business initiative please visit: http://www.research.ibm.com/cognitive-computing

Driving the journey onwards

Innovation is critical to Telefonica’s future. The IBM team has embraced this, and recognised that building new applications on legacy platforms is not the right answer. The Telefónica systems infrastructure has grown incrementally over decades, gradually increasing in complexity. The latest cloud technologies, security improvements, modern applications and componentization techniques offer routes to simplify the core infrastructure. Today, Telefonica’s real-time Sales Dashboard is hosted by IBM SoftLayer avoiding the need for additional physical servers or storage, and ensuring that the solution can scale rapidly as accesses increase for major product launches. IBM has the technology and expertise to support Telefonica on it’s journey to the future – and we’re confident we can help you too. For more information please contact: Peter Chard, IBM Telefonica Account Project Executive (pete.chard@uk.ibm.com), your IBM representative or IBM Business Partner, or visit www.ibm.com

TELEFÓNICA UK address. We are a leading mobile player in a market that is probably the most competitive and the most innovative in the world,” he says. But innovation itself needs to be driven by customer engagement, “We are going to focus our transformation and capacity investment on those areas that can be differentiated through IT, areas that will be identified from what we learn about customer preferences.” Investment driven by customer insight and experience is, he believes, what differentiates O2 in its market, and is illustrated by the ways in which Julie Sadler’s IT Engagement and Delivery team works closely with North Highland to analyse and

January 2016

TECHNOLOGY

understand customer and business requirements to deliver new services. Top line revenue growth can no longer come from commodity offerings like voice, text and data bundles, though demand for network capacity is increasing exponentially. “We have found that since we rolled out LTE we have seen 100 percent year-on-year growth in data usage.” O2 has reached 66 percent 4G penetration and has committed to 98 percent indoor coverage by the end of 2017. This in itself will not differentiate the business. Connectivity is all very well, but ‘connectedness’ is where the real growth opportunity lies. “Our business strategy is to provide a great customer experience, making sure people can leverage all the potential of the technology but delivering it in a way that emphasises the connectedness on top of the connectivity.”

“We are going to focus our transformation and capacity investment on those areas that can be differentiated through IT” – Brendan O’Rourke, CIO

Head office on Bath Road in Slough

w w w. o 2 . c o . u k

Making Software. Simple solutions to big business problems.

We are particularly proud of what we accomplished in close collaboration with O2 since 2010, supporting them every step of the way in their digital transformation. Thanks to O2 leadership, we were able to innovate to turn their vision into reality.

Better.

Our Digital Journey with O2

www.equalexperts.com

TELEFĂ&#x201C;NICA UK

From link to reception

January 2016

TECHNOLOGY

Examples of what he means are business applications like Office 365 and MacAfee security (“We are the fastest growing UK reseller of these products – and we are a mobile business!”) or Just Call Me, a very simple, cheap way of setting up a conference call aimed at small businesses. “We also offer Mobile Voice Recording to Enterprises, a network-based service that captures calls and text messages made and received on any mobile device, regardless of operating system.” This is important for any business these days, and for some like banking or insurance, a regulatory requirement. Innovation is key to competitive differentiation O’Rourke has been at Telefónica for six years, developing the digital online platform, then assuming global responsibility for rolling out digital products to the Operating Businesses around the world in a standardised form that they could deploy with ease, before coming to O2 as CIO. “In my career I have spent a lot of time rolling out mobile networks and IT around the world as the mobile ‘wave’ rolled out to Latin America and Asia. I believe that experience has given me a great insight into how different markets innovate and what is important in the UK.” He considers the UK as the world’s most innovative digital market but taking Bill Gates’s mantra: ‘We always overestimate the change that will occur in the next two years and underestimate w w w. o 2 . c o . u k

You can wait for opportunities. Or you can create them. In this increasingly dynamic business environment, technology inspires new business models, opens new markets and reveals new opportunities every day. At Cognizant, we combine business process expertise, next-generation technology and a ﬂexible, collaborative approach to help global organizations not only run better, but run different. It’s this entrepreneurial spirit that has kept us on Fortune’s list of ‘Top 100 Fastest Growing Companies’ for the eighth year running. So if you’re ready to forge new trails, Cognizant can help. Because we believe that those who truly embrace change have the potential to change the world.

Cognizant and Telefonica: Redefining Customer Experience Cognizant, a global leader in business and technology services, is proud to be associated with Telefonica UK on its journey to a leading Digital Telco. Through a strategic partnership with Telefonica UK’s Information Technology organization, we are in a privileged position to enable the business to deliver the end-to-end next-generation ecommerce customer experience and data-driven business decisions – befitting the market-leading brand (O2) presence of the organization. Cognizant’s cross-functional and crossindustry expertise coupled with global and multi-cultural experience brings unique insights to our digital solutions – from concept to market. We are in a unique position to witness this Global Industrial Mashup, where uniting the physical world seamlessly, meaningfully and efficiently to the virtual world drives success and creates market disruption. Cognizant has the privilege of working with Telefonica at the juncture of physical and digital integration driving the next-generation omnichannel customer experience – a key aspect of Telefonica’s Digital vision. A relationship that started in 2011 to bring in agility and scale to ecommerce service delivery, focused on establishing technology platform to drive customer delight for a 20 million plus customer base, has now taken a shape of enabling end-to-end market leading business

ambitions around the next-generation ecommerce customer experience. Cognizant’s hyper productive, agile and global delivery teams have implemented a “Continuous Delivery” ecosystem featuring build automation, test automation and automatic deployments to the Cloud – essentially a software-based assembly line where new features are rolled out for local as well as global consumption at Internet Speed. Through the journey, the integrated teams have won accolades such as the Ecommerce 2012 Award for Excellence – in the Redesign/ Relaunch of the Year category. Telefonica’s goal of leading the market with a Digital Telco identity, combined with Cognizant’s aim of being a front runner in today’s Digital evolution, makes this a unique and complementary partnership that can enrich people’s lives and help them live and work better.

TELEFÓNICA UK

“We believe the opportunity that technology gives people is massive and that people’s potential is not just a business issue but a social issue” – Brendan O’Rourke, CIO The UK Team with Brendan O’Rourke

January 2016

the change that will occur in the next ten’ as a starting point, he says the focus right now has to be around enabling customers to adopt the not-so-new services like Office 365, which represent massive change for them. “Creating the ability for them to transform is innovation today: meanwhile the lab is asking, what will be the behavioural change in work that we need to deal with in five years’ time?” Don’t overestimate the speed at which they will adopt the next big things like the cloud. The 15 or so people who work in Telefónica UK’s award-winning IT lab keep their eyes firmly on the revenue potential of innovation. They are encouraged to pursue and test ideas, some of which do not work when tested in user groups – this way it fails fast and cheaply. Others really

TECHNOLOGY

Video: Introducing the O2 TU Go app

fly – for example TU Go, a free app that allows customers to text or call anyone, not just an O2 customer, or check their voicemail over Wi-Fi – even in the absence of a signal, and using multiple smart devices. “It is quite different from other WiFi calling applications on the market. We started in the lab, prototyped in the lab, gave it to customers to try, and it is now Telefónica’s global Wi-Fi calling app.” This is the lab at its most effective. Horses for courses The lab is just one of the teams Brendan O’Rourke is driving, though one that epitomises his obsession with people and skills driving business value. When he took up the reins O’Rourke found w w w. o 2 . c o . u k

ABOUT TECH MAHINDRA

Tech Mahindra represents the connected world, offering innovative an enabling Enterprises, Associates and the Society to Rise™. We are a 90 countries, helping over 780+ global customers including Fortune connect across a number of technologies to deliver tangible business Fab 50 companies in Asia as per the Forbes 2014 List.

We are part of the USD 16.9 billion Mahindra Group that employs m operates in the key industries that drive economic growth, enjoying a information technology and vacation ownership.

SOLUTIONS & SERVICES

• ADMS Java & Open Source • Consulting • Customer eXperience • • Enterprise Of Feature • Intergrated Engineering Solutions • Infrastru • Performance Engineering • Product Lifecycle Management • Securi

Phone: +44 (0)1908 553400 | Fax: +44 (0)1908 553444 |

nd customer-centric information technology services and solutions, a USD 3.9 billion company with 105,200+ professionals across 500 companies. Our innovation platforms and reusable assets s value to our stakeholders. Tech Mahindra is also amongst the

more than 200,000 people in over 100 countries. The Group leadership position in tractors, utility vehicles, after-market,

Enterprise Architecture • DevOps • Enterprise Business Solutions ucture Management Services • Mobility Solutions • Networks ity • Testing • Cloud Services

| Email: connect@techmahindra.com | www.techmahindra.com

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Chris Barnard Chief Architect

Lisa Turpin Head of Service, Delivery and Sourcing

Julie Sadler Head of Engagement and Delivery 44

January 2016

an IT function that was fragmented. “We were perceived by the businesses as an enabler, good in parts, less good in others, and we had complexity and cost challenges.” That neat euphemism means he had to pare down his department, refocusing on the skills and roles needed for the future. “My vision for IT is to enable it to differentiate the business through technology. That is where we want to be. To get there we have to think forward and consider the revenue and margin opportunities of the future, the skills they need and how to get those skills into our business. “That showed me we are doing the right things. We are introducing new career paths. We have defined seven skills for the future: information security; service; product development; IP networking; commercial & vendor management; Internet of Things/cloud and information & data.” This means that there are great opportunities for new graduates, and also that mid-career staff, versed in skills like billing systems, can

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retrain – and gaining professional accreditation is part of that – in roles the business needs going forward, such as cyber security or business intelligence. The very skills that are sought after in the wider jobs market. The new strategy leader Redefined individual roles reflect the emergence of IT as a business leader. “One of the first things I realised was that IT ought to move from an enabling function to a differentiating function. It was clear to me at the time that there were a number of areas where we had to focus. One was our relationship with the business, how to act more like consultants and smart technology partners. Another, to ensure that we manage, with our suppliers, to deliver new technology effectively.” The journey has five stages, he elaborates, functional, enabling, contributing, differentiating and finally transforming. “When I came

Alistair Baird Head of Business Intelligence

Jennifer Rigby Head of Channels and Innovation

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in we were on the boundary of functional and enabling. We have just completed our annual assessment and we are now solidly contributing, so we have moved up a whole level of maturity over the last two years and with it my role as CIO has grown too. “I firmly believe there are certain things a CIO has to do. You create your role based on where you think you can make the right business difference. I have gone from somebody who runs delivery and operations to somebody who is leading a team that is challenging the business through innovation, driving the digital revenue story, looking at large scale transformation and leading that in the business.” In this the voices of CIOs and CTOs of large organisations can be heard chorusing their agreement. To paraphrase the industry guru Gartner, a company without an IT transformation

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Experience workshop for customer innovation and CXD team

Space team challenge

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What should your company’s digital strategy encompass? Digital is already the most overused word on the planet so there is a very high likelihood that every stakeholder in the organisation will have a different perception of what the digital strategy should be, getting that shared understanding is an important first step. We’ve identified 4 facets of digital strategy that we think are quite helpful in these conversations: Digital Workforce enablement – If you aren’t empowering your workforce to operate in a digital way then they won’t be able to see the opportunities digital presents. This will constrain: innovation, automation, simplification, well-being and retention. They need to be encouraged to continually evolve their ways of working as new tools become available, experiment and choose. A locked down laptop running office apps developed 3-5 years ago and email as the only real collaboration tool is a big fail here. Workforce enablement isn’t just about End User Devices and software. Nowhere is the need greater than in the IT function that provides this. They need tools to automate, dev and ops need to be one team, they need rapid cycle times and a product not project culture. This isn’t an IT transformation either, working in departmental silos will kill it. It’s a whole business unit / product transformation. Digital Customer Engagement – This is the most common thing people refer to when they think about digital strategy. Channel shift, multi-channel, Omni channel, customer journey mapping and the plethora of new opportunities to engage with your customer in a way that is really tailored and meaningful for them. The ability to measure success in real time through data and analytics and the ability to rapidly iterate digital touchpoints to continuously improve them. Digital Partner and supply chain integration – This is possibly the biggest opportunity and is often overlooked. Its full of efficiencies and new business opportunities. Straight through processing can remove whole departments and fundamentally change the service you are able to provide. Automation can knock zeros of costs, and this is an area where the BPO industry is starting to bring fully automated BPO to the market if you really can’t do away with the process entirely. Digital Business Model Disruption – This is both an opportunity and a big threat. Doing the three above will open up opportunities to fundamentally change your business model. Not doing them will leave those opportunities to new market entrants or your competitors. Ideally here the strategy will be to consciously review the strategy regularly, not annually, to encourage input from the whole workforce you’ve empowered to innovate. There is an opportunity in this space to be the most trusted advisor to the CEO for the business focused CIO.

Tel +44 207 812 6460 Email 4 8ben.grinnell@northhighland.com January 2016 www.northhighland.com

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strategy now, will not exist five years’ hence. IT has left its image as a service department behind it and is accepted as a strategy leader, having moved from managing cost to delivering value. Well … nearly. There is still pushback at all levels. “You have to work hard with your team to change the mindset,” he acknowledges. “If you are growing the top line of your business by differentiating it with technology you are making a real difference. Critical to this is an effective Enterprise Architecture, Strategy and Planning team such as O’Rourke is building under his Chief Architect Chris Barnard. “If all you are doing is managing your cost base and your delivery function you are a functional leader, which is fine but that is not the role of the CIO any more. One of the roles of the CIO in the future is going to be to oversee the federation of IT into the business. Technology is what business will be about.”

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384 The number of IT staff working in the IT department

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175 The number of suppliers that support IT operations “One of the roles of the CIO in the future is going to be to oversee the federation of IT into the business. Technology is what business will be about” – Brendan O’Rourke, CIO

January 2016

Partners in progress Finally, there’s going to be a step change in the area of supplier management. The IT department comprises around 380 people, running everything from IT operations, lab innovation, and app development to corporate platforms like email, the intranet and workplace. However there’s a huge support base of around 175 suppliers with, between them, perhaps another 2,000 people. “We have around a dozen or so top suppliers, or partners and probably about 80 percent of our spend is with these.” Partners like Accenture, Cognizant and Equal Experts will be key to the omnichannel plan. Cognizant drives much of Telefónica UK’s business critical online applications for e-commerce, while Accenture takes on the multivariate testing that looks at what improvements need to be made to the site and how they should be deployed. “Just moving things around on the page can make a big difference to how the customer perceives the experience,” O’Rourke points out. Equal Experts provides technical leadership, delivering complex projects like O2 Priority, a loyalty app that since 2011 has been giving customers special offers, free stuff, 48-hour preview access to Channel 4 TV content, concert tickets and a deal where you can get lunch for £1 on a Monday from a number of partners such as Boots and Dominos. Understandably this is very popular, so traffic peaks on that day. “You can’t manage that with

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West side atrium

on-premise infrastructure,” he stresses. “Every Monday we use the elastic cloud to meet that massive peak in demand and on a Tuesday we can bring it back down with no penalty. It meets our needs at the lowest possible cost.” Underpinning the digital future is the need to operate the IT estate efficiently and effectively, delivering great customer experience, not just infrastructure availability. Quality is critical. Lisa Turpin’s IT Service, Sourcing and Delivery team work key partners such as Tata Consultancy Services driving efficient and effective infrastructure, IBM, which is Telefónica’s long term partner for billing services and manages the core of O2’s consumer estate, NTT DATA

Video: O2 offers its Priority customers the chance to win tickets to film premieres, such as STAR WARS: The Force Awakens

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Telefonica’s Quality Assurance Strategic Partner of choice Cost effective; TCO for Quality reduced by 30% over the last three Customer experience; Zero major defects into production over the last three years Robust delivery; 99% SLA compliance over the last three years

“With NTT DATA as our partner of quality assurance, I feel safe in our promise to continue to deliver a great experience to our customers” – Brendan O’Rourke

Top 10 global IT services and consultancy provider (Gartner)

Global innovator spending $2.2B on R&D a year

NTT DATA Local delivery built on the foundations of Japanese quality

Our Core Values Clients First

emea.nttdata.com/uk 52

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Innovation

Teamwork

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who is our custodian of quality ensuring the customer experience is protected and Tech Mahindra in the Operational Systems space help us ensure success for our customers in the services we deliver. The relationship with these partners will be much more than simply a matter of buying in services. “They care because we are a big contract for them; we care because they are strategically important for us,” he explains. “Over time we intend to move towards a fewer number of suppliers, more value based contracts, and more scope so you get a better peer to peer relationship.”

O2 has had continued success, winning awards for its range of online products

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Communication service providers need to respond fast to changing customer preferences. There is a certain way. In a fast-evolving marketplace which demands leadership that brings results, there exists a way of certainty: Tata Consultancy Services (TCS). With TCS as your strategic advisor and partner, the ever-changing new landscapes of business become new vistas of opportunity. From digitally connected consumers to Big Data to emerging markets to end-to-end solutions for transforming your organization, TCS offers you market-proven, world-class experience, expertise, and guidance to show the way for your business to evolve. TCS has been a Production and Operations Management Partner in Telefonica UK's journey to a leading digital communications company. TCS' telecom solutions help you redefine your markets with innovative solutions that help you become more agile, reduce fixed operations costs, and introduce next generation services. Visit www.tcs.com/industries/telecom and you're certain to learn more

IT Services Business Solutions Consulting

January 2016

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Looking ahead Nobody can predict how O2 will stand in a Copy year’s time. If theNagesh sale goes ahead aRevised blend with Li Ka-Shing’s Three will make it the UK’s largest operator , but for now that is speculation and a job remains to be done. The last year has been one of solid achievement for the company, winning awards for its digital programme, for example Website of the Year which it recently won again for the second year running and Business Service Innovation Award at the Global Telecoms Innovation Awards 2015 for it’s Digital SMB proposition. Awards like these recognise Telefónica UK’s progress in capturing digital omnichannel traffic, all the real world and webbased places where the company interfaces with its users. “In company with some truly outstanding partners, we have become the leader in the mobile omnichannel,” says O’Rourke. This is supplemented by an outstanding inhouse team from the top floor to the shop floor, to whom Brendan O’Rourke gives every credit. Earlier this year leadership was strengthened

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Awards in 2015 • Website of the Year for the second year running • Business Service Innovation Award for its Digital SMB Proposition

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O2 is a leading proponent of flexible working and BYOD (Bring Your Own Device)

January 2016

by the appointment of Jennifer Rigby, formerly Director of Corporate Security at the Home Office, as Head of IT Channels and Innovation and her work has already been nominated for Women in IT Award 2015. And O’Rourke is particularly chuffed that two of his younger staff were shortlisted for the prestigious BCS IT Awards this year, Anna Watson for IT Manager of the Year and Kevin Condliffe for Young IT Professional of the Year – this is a tribute, he says, to the O2 talent management process. Also critical to O2’s success is the ability to provide their employees great tools for the job and a great working experience, “We have been leading proponents of remote working and Bring Your Own Device (BYOD) and such flexibility is highly appreciated by our people. We are continually driving new tools into our business; we have become great adopters of Lync (Skype for Business), Yammer and most recently OneDrive.” With companies such as TechMahindra, O2 are looking at how they can

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leverage their own Internet of Things capabilities to make their facilities smarter, providing richer, more engaged experiences for their employees. Telefónica UK’s revenues have grown annually over the last four years and that’s set to continue in 2016. “We are heading toward a more collaborative form of engagement. The next step is consultative IT that helps the business differentiate through technology – ensuring that the boundary between the business and IT really blurs,” he says. In the end it is all about a great customer experience. Without that there is a declining business or no business at all. “We drive everything from customer insight and my IT team’s job is to guard that customer experience. That experience is what underpins the O2 brand, which is why where other businesses put the business first, and minimise corporate risk, we put what is right for the customer first, and limit their risk.”

“We are heading toward a more collaborative form of engagement. The next step is consultative IT that helps the business differentiate through technology – ensuring that the boundary between the business and IT really blurs” – Brendan O’Rourke, CIO

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CLOUD CO Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Kiron Chavda

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The Met Office, the UK’s National Meteorological Service, is installing its newest supercomputer: we talk to its Technology Director Charles Ewen about the biggest of big data challenges

January 2016

ritain is a nation of weather watchers; the country’s location and, in the modern era its pre-eminence in world trade, make that inevitable. There’s still nothing on earth so unpredictable as the weather, but it was when the Met Office was set up in 1854 that meteorology started to be established as a science. The organisation started off in the Board of Trade, was moved to the Air Ministry during the Great War as its strategic role came to the fore, and became a ‘trading fund’ in 1996, a move that allows it to act as a commercial organisation and generate some of the £209 million or so a year it costs to run. It has been part of the Department for Business Innovation and Skills since 2011, moving there from the Ministry of Defence. About half that sum comes direct from the UK taxpayer to pay for the Public Weather Service, delivering services such as the National Severe Weather Warning service (established in 1987). It also pays for the underpinning infrastructure the Met Office needs, including technologies such as the UK’s participation in EUMETSAT, the EU organisation for weather satellites. In 1984 the Met Office was designated one of only two World Area Forecast Centres (WAFCs) for civil aviation, (the other is Washington) to provide global forecasts for flying at high altitude. Without this global air traffic would simply grind to a halt. The Met Office has been a prime adopter of technology since the days when its first head of department, Captain (later Rear-Admiral) Robert

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FitzRoy introduced synoptic charts, where weather observations taken at the same time were drawn on a map to aid forecasting, a technique still used today, albeit now an automated process. In 1909 wireless telegraphy made weather readings from ships at sea accessible. Today the Met Office receives observations from aircraft, ships, buoys, satellites and land stations all over the world at a rate of around 100 million observations a day. Crunching big numbers To collate all of this, the Met Office needs a huge amount of processing power. Its first computer in 1959 was a Ferranti Mercury, capable of

â&#x20AC;&#x2DC;The Met Office has been a prime adopter of technology since the days when it first introduced synoptic charts to aid forecastingâ&#x20AC;&#x2122;

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Transforming the Potential of Weather Prediction Cray is proud to partner with the Met Office to deliver a farreaching transformation in their operational and research capabilities. This process leverages an investment of £97 million by the UK government in the Met Office’s next supercomputer facility. The Met Office estimates that increasing forecast accuracy through high performance computing (HPC) will deliver £2 billion of socioeconomic benefits to the UK through the protection of life, livelihoods and critical national infrastructure. The use of weather and climate intelligence contributes to making the UK more resilient to weather & climate risks, and aids government and business decision making for future investment, climate change mitigation and supporting economic growth. With the new Cray facility, Met Office scientists can improve their prediction systems across a wide range of both time scales (from hours to decades) and length scales (from global earth system modelling to high-resolution country and city-scale models).

Some examples of potential benefits are:

Aviation - £295 million of benefits: are likely as better forecasting for airports for factors such as snow, strong winds and fog will help reduce disruption and enable flight path optimisation to reduce fuel consumption. Winter resilience - £75 million of benefit: detailed and accurate advance warning of winter weather that could disrupt transport has benefits through reducing delays for workers and freight delivery, better advance decision-making for things like school and bridge closures, and enabling people to plan alternative working arrangements in advance of severe weather to maximise productivity.

Inside the Cray Met Office facility

Cray and the Met Office are developing a world-class operational supercomputing facility: • Phased deployment between 2015 and 2017, delivering over 13 times the sustained application performance of the systems it replaces, utilizing multiple generations of Cray® XC™ supercomputers. The first phase went live in August 2015, ﬁve weeks ahead of schedule.

• The systems are supported by a dedicated team of Cray system analysts, embedded on-site with the Met Office’s supercomputer support teams. The Cray and Met Office experts work collaboratively to ensure that both operational and research users obtain maximum benefit from the supercomputing facility. • Cray also provides access to its world-leading weather and climate application specialists, who assist the Met Office in the porting and optimization of codes for the new supercomputing systems, as well as preparing the Met Office’s application portfolio to take advantage of the architectural changes expected in future systems.

About Cray

Global supercomputing leader Cray builds innovative systems and solutions enabling researchers to meet existing and future simulation and analytics challenges. Leveraging years of experience developing the world’s most advanced supercomputers, Cray brings you a comprehensive portfolio of high performance computing, storage and data analytics solutions delivering unrivalled performance, efficiency and scalability. Cray is the leading provider of supercomputing solutions for operational numerical weather prediction, earth system model development and climate research. Cray’s customers include large model development centres, climate research centres, many national meteorological agencies and approximately 60 percent of the world’s leading global modelling centres. Our new high-performance computer (HPC) combined with advances in modelling will give an enormous lift not just to the quality of our science but also to the efficient delivery of our services. The HPC will enable us to move seamlessly from increasingly accurate local weather forecasts to predictions of how the climate will change over time, all done at higher speed and greater resolution than ever before.

• The Cray XC supercomputers are supported by high performance Cray® Sonexion® storage systems.

“The Met Office is delighted with the success of the implementation of the Cray HPC to date. The success is due to a huge amount of collaborative workings from both internal Met Office teams and Cray our supplier. We look forward to continued success for the rest of the implementation.” - Dave Underwood, Deputy Director of HPC Programme

• Multiple redundant systems running in active-active configurations to both meet the Met Office’s critical operational requirements and maximize return on investment for the Cray systems.

Further details about Cray’s solutions for weather forecasting and climate research can be found on our website. www.cray.com

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doing 30,000 calculations a second, which made numerical based predictions possible for the first time. But the amount of data and the possible refinements have since increased exponentially. Charles Ewen explains it in terms of Moore’s Law whereby computing capacity tends to double every year driven by ever higher densities of transition on the computer chips. “Initially, we are trying to describe the state of the Earth’s atmosphere at a given point in time,” he says. “That has to be done on a global scale, as the UK’s weather is influenced by other air masses. We build that picture using millions of observations that come in from land-based, space-based, airbased and marine-based platforms, 24 hours a day, 365 days a year in collaboration with the World Meteorological Organisation (WMO) a UN collaboration between 191 member states.” These observations have been shared freely and openly by the United Nations convention across

Charles Ewen, Technology Director and CIO

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â&#x20AC;&#x2DC;With close to half of its near 2,000 employees describing themselves as scientists or meteorologists, the Met Office is a world leader in weather and climate researchâ&#x20AC;&#x2122; 64

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geographical and political borders for many years. This reinforces the notion that open data is not new. These observations are combined on a three dimensional grid or lattice so that the computers can use them to initiate the process of something called Numerical Weather Prediction, or NWP. With close to half of its near 2,000 employees describing themselves as scientists or meteorologists, the Met Office is a world leader in weather and climate research. Led by Chief Scientist of the Met Office, Professor Dame Julia Slingo FRS, its research seeks to understand the factors that drive weather and climate systems so that they can predict them with ever increasing skill. The science that the Met Office undertakes is more and more collaborative, nationally and internationally working with

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universities and research organisations like the Natural Environment Research Council (NERC) and America’s National Oceanic and Atmospheric Administration (NOAA). The Met Office Academic Partnership is a collaboration with the universities of Exeter, Leeds, Oxford and Reading. “It’s not a typical research model,” says Ewen, “But it’s very effective. They put some of their blue sky principles on hold to work on coordinated themes of research which deliver more than the sum of the parts in terms of scientific understanding. It also helps us to foster the next generation of scientist,” he says. About 1,400 Met Office staff work at its Exeter campus and amongst them are some of the world’s leading experts and the authors and co-authors of pivotal bodies of research such as the International Panel for Climate Change (IPCC). Underneath them, both literally and figuratively, sit the huge computers that run the Met Office Unified Model (MetUM), that is managed at the Met Office and adopted in a number of other institutions around the world. The knowledge generated by the science programme ends up being encoded in the MetUM, a series of programs running into millions of lines of code that take the state of the world’s atmosphere ‘now’, and project it forward into the future. Bringing a few million lines of code into collision with a snapshot of the atmosphere all the way out to the edges of space and the computer’s job of prediction begins. “The initialisation

2,000 Number of jobs to be supported by Met Office

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process is one of the most computationally ‘expensive’ things we do,” says Ewen. “It involves some very tricky maths and there are a lot of feedbacks required in the process.” A programme of data assimilation calculates a forecast model trajectory that best fits the available observations, but even with a billion points of observation – and there are that many – chaos theory dictates that tiny variations can disrupt the model considerably with the passage of time. A number of fundamental equations dominate the way weather works, these were described by an ex-Met Office employee called Lewis Fry Richardson in the 1920s. Today’s weather forecasts are more complex and also have to w w w. m e t o f f i c e . g o v. u k

MET OFFICE deal with the challenges of chaos, which were described in meteorology by Edward Lorenz, ‘While who used the phrase ‘A flap of a seagull’s wings processing may forever change the course of the weather’, to power is explain the impact of chaos on weather. Applying important, the complex maths at a scale made possible by modern Moore’s Law driven computers, generates the defining data sets that are almost unimaginably massive. long-term The word ‘trajectory’ is significant – it is no longer challenge for the goal of the Met Office to provide deterministic the Met Office’s forecasts – forecasts that say definitively what will happen and when; chaos and Lorenz show this is IT is input not possible, especially in longer timeframes. More and output’ useful in the real world are probabilistic forecasts that map the likelihood of events, but these require even more sophisticated calculations. The best way to tackle this is to run the NWP a number of times, with a series of ‘perturbations’ built in around known uncertainties. The ‘snap shot’, of the atmosphere will not be completely accurate and running the model a number of times, all with slightly different starting conditions produces simulations that result in different possible outcomes. Clever statistics allow the degree of variance in these outcomes to provide information about the probabilities associated with the weather forecast. The first Met Office Thus while processing power is important, computer was a Ferranti the defining long-term challenge for the Met Mercury in 1959 Office’s IT is input and output, or I/O, says Ewen. “One of the chief limitations on how big we can make a machine and consequently how reliable 68

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a forecast can be, is how much data we can get in and out of these model nodes.” Just handling the data generated by NWP and using it to generate weather forecasts presents some major challenges. The supercomputing challenge It’s not surprising that Ewen says that Dr. Moore keeps him awake at night. “When you are starting out with a very large supercomputer, the IBM POWER 7 that we put in six years ago, this inexorable Moore’s Law-driven change has huge implications.” The current mass storage system in Exeter holds around 60 petabytes of data: the contract recently signed with Oracle and SGI for its replacement will take the capacity up to an exabyte, or 1,000 petabytes by 2018, and Ewen is confident the Met Office will become one of the UK’s first exascale organisations. In Gartner’s 3V definition of big data – variety, volume and velocity – it already qualifies, in spades, on every count.

The current amount of data in petabytes held in the mass storage system in Exeter

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The Met Office is Cray’s biggest ever contract outside the USA

January 2016

The business case for the capital grant of £97 million awarded in October 2014 was based on the calculation that the new machine will deliver an estimated £2 billion of socio-economic benefit to the UK over its lifetime through benefits such as improved forecast accuracy. Previous purchasing cycles have been paid for out of the trading fund’s revenues: this grant emphasis the strategic national importance of having the new supercomputer and mass storage system. After looking at the performance and cost effectiveness of the very few alternatives, a contract was signed with Cray for its XC40 machine, Cray’s biggest ever contract outside the USA. It is already partially installed in the Met Office and the old machine was decommissioned

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in parallel during September, five weeks ahead of schedule. To go from signing to implementation in five months is unprecedented, and Ewen can’t find words to convey the achievement which involved Met Office Science & Technology teams as well as specialists at Cray to deliver a major IT project earlier than expectations. Of course there’s much more to it than construction - the MetUM needs to be modified to run on the new machine and countless other adjustments had to be made, with never the luxury of even a day’s downtime. “We broke the programme down into three phases,” he explains. “Phase 1a gives us broadly the same computational capacity as the machine it is replacing. It is that part of the new machine that allows us to turn off and decommission the old machine. “Phase 1b gives us some more capacity, and 1c is the final tranche of capacity, involving a new data centre being built a mile away on a science park. That will be commissioned Spring 2017 and will give us the final 70 percent of our new computational capacity.” By then its processing power will be 23 petaflops - meaning it can perform 23 trillion calculations every second or more calculations per second than there are grains of sand on every beach in the world! Even then, the new computer may not feature in the world top ten of high speed computers, a list dominated by machines that are built primarily for speed rather than utility. You wouldn’t

‘Its processing power will be 23 petaflops - meaning it can perform 23 trillion calculations every second or more calculations per second than there are grains of sand on every beach in the world!’

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MET OFFICE

‘You wouldn’t expect a delivery truck to outpace a Formula 1 car, but this machine is a delivery truck that will, for a while, leave the race cars in its wake, while still delivering heavy loads with reliability’ 72

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expect a delivery truck to outpace a Formula 1 car, but this machine is a delivery truck that will, for a while, leave the race cars in its wake, while still delivering heavy loads with reliability. Technology pairs with science Ewen is a man with many hats. As the only technology director on the Executive Board of the Met Office, he also fills the role of Chief Information Officer, with a Chief Technical Officer and Chief Digital Officer reporting to him. His division has a headcount of around 350, though in an organisation like this it is not always helpful to draw a distinction between ‘science’ and ‘technology’. Accordingly he works closely with the Chief Scientist and is wary of the firewall mentality, which

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reduces IT to a repair and maintenance function to which people come with their problems. As well as having responsibility for the technology, he also wears the title of Chief Information Risk Owner, a public sector role that involves overseeing information and security matters in a department that, after all, has only recently spun off from under the defence umbrella. We already mentioned how critical the Met Officeâ&#x20AC;&#x2122;s role is to aviation. It faces all the normal threats of a large IT-based organisation, and in addition has a strategic role to play in the national economy. It works more with global governments and businesses so security will become its USP, and it has to be world class there as in everything else. Ewen is not exactly a cloud evangelist. At the w w w. m e t o f f i c e . g o v. u k

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scale of activity we have been describing the Met Office clearly needs its own data centre, and the cloud, as he points out, is really just someone else’s data centre. What it does provide though, is what he calls instant provisioning. “People are more interested in weather when there is interesting weather about! We get 20 or 30 times more traffic on our website when there is dramatic weather going on than at normal times. You can cope with that in two ways. You can either have an infrastructure that is scaled at your peak anticipated load in which case it will be idle most of the time, or you can come up with an architecture that can scale dynamically to meet current needs.” In such a case, cloud provisioning is attractive, and the Met Office was one of the earliest 74

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adopters of cloud scaling technology to meet the needs of its public websites. It uses a content distribution network (CDN) from specialist provider Akamai. However ‘moving to the cloud’ is a meaningless concept in the context of an organisation like the Met Office, and one that he finds a bit frustrating. “We see it very much as tools in a toolbox, part of a mixed economy where we make the right choices rather than have a goal to move to the cloud by a certain date.” Matching methodology to meteorology This approach to project delivery is a corollary to not tolerating firewalls between departments. “Closer to the application space we use agile techniques, quite highly structured, and Scrum-based methodologies.” For those unfamiliar with the idea, Scrum is a model that involves multiple small but interdisciplinary teams working in an intensive and interdependent way to produce an outcome. “That is not necessarily bounded by functional requirements. Functional requirements clearly get defined, but they don’t get defined at the first phase; they get defined at a later phase when we know what is realistic, affordable and achievable before we commit to delivery of a set of functional or non-functional requirements.” ‘Waterfall’ methodologies, he explains, would start by creating a well-formed requirements set, the kind of attitude that typifies the failed public sector IT projects in times gone by. “Where that w w w. m e t o f f i c e . g o v. u k

MET OFFICE

The Met Office is the leading government department for operational efficiency

happens it’s often a sign of setting out to build a castle but finding you only had enough bricks for a semi and the customer actually wanted a caravan! I am a believer in iterative development, recognising that you almost certainly do not know what the customer wants because they often don’t know what is possible or what they need!” In a recent government assessment of 40 departments for ‘green IT’ the Met Office came out as the only one in a leading position for effectiveness and efficiency and has recently won a major UK IT Industry Award. “We work hard,” asserts Ewen, “to make sure IT is not seen as a cost but as a core facilitator

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for the business. I am constantly looking at how to invest to save and to grow.” It surprises him to see that there are still organisations that don’t understand that. “It is wrong to see IT as something that should be managed down. At times, there are good strategic reasons for managing it up! My strategy for the last two or three years has been moving IT from being an enabler to being a leader, that is, a position of appropriate shared leadership.” IT is undoubtedly moving to the top floor in every organisation, having been locked in the basement for too long - we are used to science being part of the leadership process, so it is a short hop to affording IT the same level of participation. Technology is moving too fast to be called on at the end of a decision process: it needs to play a dynamic role from the outset.

‘The Met Office faces all the normal threats of a large IT-based organisation, and in addition has a strategic role to play in the national economy’

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Thatâ&#x20AC;&#x2122;s entert Written by Lucy Dixon

s tainment Produced by Stuart Shirra

FORTHNET

From one of the top academic research institutions in Greece to a leading entertainment and telecoms provider, Business Review tracks Forthnet’s exciting journey

January 2016

s CEO of the largest entertainment and communications provider in Greece, Panos Papadopoulos has his mind firmly on innovation. “I strongly believe that, especially in a market like Greece, innovation is vital. Growth and innovation tend to be synonymous and this is the DNA of Forthnet. We try to build our differentiation advantage through innovative services that improve our subscribers’ quality of experience,” he says. The innovative services that he is referring to include internet and satellite pay TV, as well as broadband and telephone provision. Forthnet is much more than just a telecoms provider. It has an interesting history as a successful spin-off from one of the top academic research institutions in Greece, the Foundation of Research and Technology Hellas, which gave the acronym FORTH. “Our history goes back to 1984 when the first email was sent and received with the rest of the world outside Greece, and then in 1989 we established the first internet connection with Europe and more specifically with France,” explains Papadopoulos. “This internet connection project was carried out by a group of FORTH researchers and in the following years they had the idea of creating the company that would commercially exploit the new internet market. That is, more or less, how Forthnet was founded in 1995.” Panos Papadopoulos was a core member of those researchers. So from this background of academic

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Panos Papadopoulos CEO

excellence, Forthnet evolved into the largest independent broadband and telephone provider in Greece and it was the company that brought innovative new services into the Greek market - including being the first to broadcast in HD through its pay-TV platform, Nova, which it has owned since 2008. Papadopoulos says: â&#x20AC;&#x153;It was a strategic decision to acquire Nova, the telecoms industry was saturated and we identified that the future was in the entertainment industry. The pay-TV penetration in Greece was very low five

Panos Papadopoulos is the Chief Executive Officer of Forthnet, the company that brought internet and pay-TV to Greece, since 2011. Under his leadership the company went through a major and successful organic restructuring to accommodate a changing macroeconomic environment, with evident financial indicators. Major milestones include, among many, the recent share capital increase, the shaping and the creation of the bundled services products in Greece and the companyâ&#x20AC;&#x2122;s influence in shaping the new trends, both in terms of customer culture, but also in terms of development in the sector. Currently, he is also serving as an Executive Vice Chairman of the Board of Directors.

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years ago; it was around 11 percent, far below the European average. So the huge opportunity was in the entertainment sector, and we have proved that having Nova as the main arm of our commercial strategy would be successful.” Forthnet owns and broadcasts, along with Nova distributed channels, the Novasports and Novacinema channels. The sports channels offer the most popular Greek sports content, such as the national top leagues in football, basketball and volleyball. The Novacinema channels, through exclusive deals with the major Hollywood studios, offer premieres and blockbusters one year before any other channel in Greece. And Forthnet invests heavily in sport. “We are the main broadcaster of all Greek sports. During the last five years, we have invested more than 250 million Euros in the Greek sports

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industry, making us by far the main supporter. Speaking more specifically about the Greek football industry, researchers say it accounts for more than 40,000 indirect jobs. So we could claim that all of these 40,000 indirect jobs are linked to our operation as the largest commercial supporter of Greek football.” This impressive statistic is further supported by Forthnet’s backing of local cinema. Papadopoulos says: “During the last 15 years we have supported and invested in more than 125 co-productions and this translates to 50 million Euros in the last five years alone.” And when Forthnet is involved in a film, this means

“It was a strategic decision to acquire Nova, the telecoms industry was saturated and we identified that the future was in the entertainment industry.” – Panos Papadopoulos, CEO

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FORTHNET

Proudly supporting Forthnet with the evolution of their next-generation PayTV services Pace is a leading technology solutions provider to the PayTV and broadband service industries. Over thirty years of leadership, experience and expertise is recognised by a customer base that spans the globe.

January 2016

FORTHNET

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it undertakes the whole promotion, from the production until the movie is on at the cinema and eventually broadcast on Forthnet’s channels. Although supporting homegrown sport and creative talent is admirable in itself, Papadopoulos admits it is also all about strategy. He says: “We believe that local content and especially local sports content is at the top of Greek audience’s favourites . This is how we shifted our strategy during the last five years. We focus on local content, we invest and capitalise on that by creating the content that differentiates us from competitors.” Aside from the over 1.16 million subscriptions (in 805,000 households), another interesting avenue for growth for Forthnet has been with business customers. “We have a very strong footprint in the business sector, with more than

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FORTHNET 40,000 small and medium enterprises as clients and that was due to the huge experience we had from the early steps of our history in the business sector. With that specific clientele, what we try to provide is flexible solutions that can adapt to any business customerâ&#x20AC;&#x2122;s needs. We can bundle our business portfolio in order to provide fixed telecommunications services, managed security services, collocation services, hosting services and cloud services, giving our customers continuity and security and, of course, a reduction to their operational cost.â&#x20AC;?

ALWAYS RISING TO MEET NEW CHALLENGES Over the years, Technicolor has proudly supported Forthnet in providing end users with the best in class broadband services. Looking ahead, we are thrilled to continue our successful collaboration as Forthnet ventures into new multimedia horizons.

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And Papadopoulos recognises that there are still many ways that Forthnet can grow, both with its consumer and business customers. “Greece is still well below the average of the European Union on pay-TV penetration, and we do believe that supplying this in combination with telecoms services is the main way for us to grow.” But, keeping in mind the company’s innovative nature, it is also concentrating on providing for today’s generation of consumers, who increasingly want to look at content on mobile devices. So with this in mind, Forthnet

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FORTHNET

introduced Nova Go, featuring live and on demand TV content on laptops, tablets and smartphones. This launch highlighted Forthnet’s position as a leader in the market. Papadopoulos says: “We have transformed the whole company, the whole organisation, into an entertainment and communication service company. We are the only company in Greece that has expertise and culture in the pay-TV market. Our competitors treat pay TV as a fixed telecom retention tool. For us entertainment is our main focus. We pick the content we provide to our subscribers, we choose the programmes that the average Greek household wants to view, from Greek football and Greek basketball to blockbuster movies and hit series.” This content-focused approach will continue to set Forthnet apart. Papadopoulos concludes: “The new consumer wants to see and consume different services and entertainment in general. They will be more and more involved in content creation and the whole entertainment industry is shifting to provide new user experiences, converging traditional media and social media, while at the same time rapidly evolving technologies that meet the users’ need for mobile entertainment.” 90

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‘“Greece is still well below the average of the European Union on pay-TV penetration, and we do believe that supplying this in combination with telecoms services is the main way for us to grow.” w w w. f o r t h n e t . g r

A NEW REALIT Written by Nye Longman Produced by Craig Daniels

M I D WA M E D U TA I N M E N T

Having effectively introduced an entirely new industry to Saudi Arabia, Midwam Edutainment is leading the way with virtual and augmented reality technologies

January 2016

eizing the opportunity to make an irreversible impact on the Kingdom of Saudi Arabia (KSA) technology sector, Midwam Edutainment entered the market just over three years ago, offering both the government and private sector something that they never had before: virtual reality (VR). Having already achieved an annual turnover of $100 million in such a short time, while acquiring significant partners and clients along the way, the technology company has reached the position where it is not only the principle VR leader in the Kingdom, but can also export its products and expertise. We speak to Midwam’s Chief Technology Officer (CTO) Khalid Al Muawad – arguably one of the most important tech influencers in the Kingdom – about how the company has worked hard to establish itself as the leading VR

$100m

provider in the country and the sound business practices that have made this all possible. Operations Midwam’s technology offering to the Saudi market can roughly be split into VR and Augmented Reality (AR) solutions, immersive displays, gesture systems and holographic displays. This technology has been adapted to serve the needs of a growing number of sectors which today includes medical, industrial, education, vocational training and, as the company’s forward-thinking name suggests, the growing trend of ‘edutainment,’ as well as sports. The company’s solutions span from AR wearables such as Google Glass, EON AR and the Oculus Rift, to a variety of multi-sided

Midwam’s annual turnover in 2014

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Experience Mo Learn Faster

EON Reality is the world leader in Virtual Reality (VR) and Augmented Reality (A for industry, education, and edutainment. EON Realityâ&#x20AC;&#x2122;s success is tied to its be right and should be available, accessible, and affordable for every human on th

www.eonreality.com

ore

AR) based knowledge transfer elief that knowledge is a human he planet.

M I D WA M E D U TA I N M E N T

immersive environments and interactive mirrors. A recent study has shown that 3D solutions have the potential to increase studentsâ&#x20AC;&#x2122; attention levels by up to 92 percent and increase test scores by as much as 35 percent, which goes to show that Midwamâ&#x20AC;&#x2122;s focus has the potential to make a positive effect on the society through educating them digitally. The companyâ&#x20AC;&#x2122;s complete solution for the oil and gas sector represents the best example of its industrial offering and covers the whole process, from exploration, to planning and production. Its applications provide simulationbased training which improves the transfer of skills and also increases knowledge retention. Solutions such as these enable companies to equip personnel to perform their jobs more safely, quickly and effectively. Companies 98

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can also potentially reduce their costs associated with infrastructure, travel, and time, not to mention any costly accidents that can occur through on-site training. When used in a medical context, Midwam’s VR solutions enable students to experience a range of therapeutic processes and operations without posing any risk to patients or staff; costs associated with this type of compensation, not to mention those involved with sourcing are eliminated, along with complications arising from the presence of red-tape. Al Muawad explains just how forward-thinking Midwam’s offering to the KSA market was when it first started: “When it comes to technology, the Kingdom has received a lot less exposure than markets like the US and the EU or even Dubai. We are the only company in Saudi Arabia that provides turnkey solutions in the form of interactive hardware, software and content development. We entered into the market at

‘Seizing the opportunity to make an irreversible impact on the Kingdom of Saudi Arabia (KSA) technology sector, Midwam Edutainment entered the market just over three years ago, offering both the government and private sector something that they never had before: virtual reality’

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a time when people first began to have smart devices and now almost everybody does.” The decision to enter the market at that particular time enabled the company to immediately provide turnkey solutions as opposed to merely providing customers with solutions in an experienced market, he explains: “We have quickly learned that customers were looking for complete tech packages, for example science labs or classroom experiences. We provide solutions that address a specific issue for each particular industry.” Having gained regional success, Midwam entered into a partnership with Eon Reality Inc – a leading VR and AR company with a presence in 12 key markets across the world and an impressive roster of world-leading clients. Al Muawad explains that this relationship was mutually beneficial: “We have massive capacity to provide solutions in the KSA, so we became partners who work on VR and

The number of key markets across the world that Midwam has a presence

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200 Key specialist staff employed by Midwam Edutainment

AR for them. They work closely with us and gives us all the required case studies to help us educate people. They are global leaders which makes it easier for us to showcase our work abroad; they have shown a great effort in the past ten years on how to add value.” Staying ahead Al Muawad highlights the fact that Midwam’s uniqueness in the KSA market was initially problematic when it came to bringing in the right talent and convincing local business and government institutions of the relevancy of interactive VR technology. But in just a

Services • Digital Media • Virtual Reality • Education • Creative

• 3D Visualisation • eLearning and Mobile Learning Technologies

Tel +968 24152042 | Fax +968 24152041 Email info@asm-tech.com | Web www.asm-tech.com Ofﬁce Address: ASM Technologies LLC, Suite 03128, KOM3 Knowledge Oasis Muscat, Sultanate of Oman

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short time the company was able to tackle both of these issues and transform them into aspects that it now leads the Kingdom in. He classes his workforce of 200 as some of the leading lights in the Saudi tech space. He says: “It was difficult, especially at first, to recruit local Saudis into this industry; we always strive to be a company that hires locals in line with government guidelines. The investment to train our talent on the latest VR and AR methodologies was very high but it made a lot of sense to ensure that locals could get this knowledge. “We have sent our employees as far as the US, Europe and the Far East to learn with our partners out there. We are also proud to support employing women in the company because they too have the right skill sets; they now make up about 40 percent of our talent base.”

Key Personnel

Khalid Al Muawad Chief Technology Officer Khalid Al Muawad is a Co-Founder, Partner and Chief Technology Officer of Midwam, Edutainment. He has been an integral part of the company, which has entered significant partnerships with multiple technology providers from around the globe and has revolutionised the way tourism areas are visualised. He is a strong advocate of empowering users on an innovative education platform.

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“We are the only company in Saudi Arabia that provides turnkey solutions in the form of interactive hardware, software and content development. We entered into the market at a time when people first began to have smart devices and now almost everybody does.” – Khalid Al Muawad, Chief Technology Officer 104

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He is also keen to stress that the company’s unceasing focus on remaining innovative was supported by its passion for establishing a VR tech industry in the country, he says: “We play a big role in supporting the creative economy in Saudi Arabia and are looking for a partner to support us so we can do even more. “The company declared from day one that we will aim to incentivise every effort our employees make. As our company grows and our knowledge increases, we also try to grow our incentives –even growth in forming new partnerships is incentivised. Rewards are also there for extra special personal efforts.” Midwam has also cemented its position at the forefront of the technology industry in the KSA with the construction of a Interactive Digital Center which enables potential customers or even those with just an interest in VR to come in and experience the latest developments and to see the company’s role as a pioneer in the country.

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Al Muawad explains: â&#x20AC;&#x153;Our $15 million interactive digital centre connects and showcases highend technologies when it comes to AR and VR in the country. We did this to educate people on how to use the technology and because the culture in the Kingdom is less exposed. This technology can be very difficult to explain or present unless you have experienced it yourself.â&#x20AC;? Having effectively introduced an entirely new industry to the KSA, Midwam is focused on ensuring that its products and expertise penetrate as much of the market as possible while remaining at the forefront of technological innovations and ensuring that its talented workforce is best placed to perpetuate its success.

$15m investment in interactive digital centre

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Fresh thinking Written by Nye Longman

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Software and consultancy company ThoughtWorks has long been a pioneer in its field, as Business Review reports

Key Personnel

David Whalley CIO

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hat is clear from speaking to ThoughtWorks’ CIO David Whalley is that the software and consultancy company was pioneering everything that is now standard practice years before such operational trends became fashionable and commonplace. Having individuals who literally ‘wrote the book’ work for the company is a testament to the culture it embodies and representative of its ability to be the first in delivering fresh thinking using the latest technology. ThoughtWorks provides software delivery, pioneering tools across 12 countries hailing from a variety of professional sectors including education, e-business, retail, healthcare, media, global development, along with government institutions. Examples of its innovations include assistance in building an interactive education program, creating a product management system, and developing the back-end mobile system for a major retailer. ThoughtWorks’ offerings are structured to assist clients with a variety of different needs, every step of the way. The company has the capacity to experiment, design, and deliver – whether just in the office or across the globe. Its understanding of how technology enables businesses to compete more effectively is at the heart of its thinking, covering everything from making existing systems perform optimally to complete re-design. Innovation is an idea that is often bandied

TECHNOLOGY

around business circles without any consideration given to its implications or even its meaning; ThoughtWorks has fearlessly swept aside this ambiguity with its own interpretation – nothing less than revolutionising software design, creation, and delivery while maintaining a strong commitment to using its scope to bring about positive social change. Whalley explains that this approach has not only entrenched its founding vision of consistent, radical change but has empowered the company to share this approach with the rest of the industry, he says: “We are responsible for solving the industry’s hardest IT problems; we want to change the way people think about and do their IT. We are one of the pioneers of agile, continuous delivery, as well as lean enterprise development. “We were driving things like agile and

3,600

Number of employees at ThoughtWorks

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Uncovering DevOps Challenges with Continuous Intelligence As organizations embrace the DevOps approach to application development they face new challenges that can’t be met with legacy monitoring tools. While continuous integration, automated testing and continuous delivery have greatly improved the quality of software, clean code doesn’t mean software always behaves as expected. A faulty algorithm or failure to account for unforeseen conditions can cause software to behave unpredictably. Within the CD pipeline, troubleshooting can be difficult, and in cases like debugging in a production environment it may not even be possible.

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Adding to the challenge, DevOps teams are adopting container technologies like Docker as a way to localize and isolate software function, while running applications on hyper-lean OS environments. In a DevOps context, containers allow agile teams to templatize application execution environments that developers can use and operations teams can “bless” for production deployment.

+ Provide real-time insights. With Sumo Logic DevOps teams can easily extract machine data insights to provide greater intelligence around their customers, products, and application usage. These insights provide a more accurate and complete analysis for business users.

DevOps teams are challenged with monitoring, tracking and troubleshooting issues in a context where each container emits its own logging data. Machine data can come from numerous sources, and containers may not agree on a common logging method. Once log data has been acquired, assembling meaningful real-time metrics such as the condition of your host environment, the number of running containers, CPU usage, memory consumption and network performance can be arduous. Sumo Logic - Full Stack Visibility DevOps requires a new breed of log analytics tools that runs at cloud-scale, employs predictive algorithms, and can be integrated with a host of DevOps tools across the entire continuous delivery pipeline, not just server data. Sumo Logic is an advanced log analytics tool that brings these unique capabilities to DevOps teams. Sumo Logic enables you to:

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TECHNOLOGY

continuous delivery which are now mainstream and are continuing to think about how we build and run IT; we are constantly reinventing ourselves internally to achieve this. Our clients come to us because we can fix their hardest problems. My aim, as CIO, is to be able to point to our internal IT and say we are an exemplar of how to do this.” Redefining boundaries One of the major facets of thinking that underpins ThoughtWorks’ ideology is its desire to remove as many boundaries as possible which is extended by its promotion of openness across all of its operations. An interesting manifestation of this has been the way in which it has approached the ongoing design and deployment of its new security model. Whalley explains: “Clearly, everybody’s focused on security so I don’t think we’re different to anyone else in that respect but we are thinking about the security perimeter in a different way.

“We are responsible for solving the industry’s hardest IT problems; we want to change the way people think about and do their IT. We are one of the pioneers of agile, continuous delivery, as well as lean enterprise development” – David Whalley, Chief Information Officer

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The traditional way is to focus on firewalls and building controls around an enterprise to stop people getting in. We have actually reached the stage where we are moving our remaining software to the cloud. So we can rethink our security model. â&#x20AC;&#x153;We have 35 live offices and theyâ&#x20AC;&#x2122;re spreading, literally, to pretty much every part of the world. We have people spanning from Ecuador, Brazil, London, and Singapore. We have to have a very flexible model of supporting how our people work. 114

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“What we’re doing is thinking about the perimeter that we’re trying to secure and think about the trust levels that we enable, how people access our systems. The level of security will depend on who you are, where you are and what you’re doing.” “If the device you’re working on is provided by the company then we’re confident that it’s encrypted and we’ll trust that device. If you’re in a ‘strange or new location’, then we’re going to be more suspicious and may ask you to authenticate through a more rigorous process.

$500 million Expected 2015 revenue generated

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‘Although having led in its field for so long, ThoughtWorks is certainly not about to become complacent, which is why the company is pioneering IT innovations internally and while working with its clients’

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I think it is different than what 95 percent of companies are currently doing because they are reinforcing the boundaries and enclosing things. That won’t work in ThoughtWorks where we need to provide our consultants with the flexibility to help our clients in whatever location they are while still protecting sensitive data. “It gives me as the CIO much more flexibility because once we’ve got that model, it’s much easier to maintain than having to think about firewalls and physical security in lots and lots of offices with people travelling around the world.” “We are also embracing ‘Shadow IT’. Rather than control IT systems we actively encourage our employees to build and market their own applications that can, using the same security models, access our data. This will allow us to focus our internal IT on real core functionality and utilise the talent we have in the organisation to extend that core. Early days, but the results are so far encouraging.” Whalley also explains how the company is a strong believer in the power of software and technology for social change. That ethos is embedded into the organisation and touches and influences everything we do. University graduates, for example, are sent to India to attend a six-week orientation course, now known as ThoughtWorks University; alongside learning important skills, the newcomers also get their first taste of the company’s innovative culture and understand

TECHNOLOGY

that its social mission is not a Corporate Social Responsibility add-on, but something integral to who it is and how it operates. Although having led in its field for so long, ThoughtWorks is certainly not about to become complacent, which is why the company is pioneering IT innovation internally, as well as with its clients. Its mission to break down existing boundaries instead of erecting new ones resonates far beyond its industry and is a model for all companies to aspire to. w w w. t h o u g h t w o r k s . c o m

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Surveying the M Written by Nye Longman Produced by Heykel Ouni

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A R A B I A N G E O P H Y S I C A L & S U R V E Y I N G C O M PA N Y

The Arabian Geophysical and Surveying Company is diversifying its offering away from reliance on the oil and gas industry

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he Arabian Geophysical and Surveying Company (ARGAS) was not content to be subject to the increasingly volatile ebb and flow of the global oil markets so it is leveraging its experience to expand into new markets. Growing its presence beyond the Kingdom of Saudi Arabia (KSA) and offering new services to new clients, CEO Saad Al Akeel is ensuring that this achieved across every aspect of the company. He explains how the company is achieving this while

ENERGY

Key Personnel

Saad Al Akeel CEO

maintaining an all-star roster of hydrocarbons clients and also how ARGAS is seeking to lead its field in both talent and technology. Operations For much of its illustrious 50 year history, ARGAS has primarily focused on seismic data acquisition services for oil and gas companies operating in the KSA. Since 2007, however, the company has been undergoing a lengthy and

Eric Lavorel Chief Operating Officer of ARGAS

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A R A B I A N G E O P H Y S I C A L & S U R V E Y I N G C O M PA N Y

AL RAJHI METAL INDUSTRIES

We appreciate your interest in our Corporation. From start to finish, the services and products we offer are the finest quality. When you are looking for quality-dependent equipments or services, you will need a vendor who will not uses highest quality of professional services and qualitative products, and ensures that quality is our standard in every field and line production of Al-Rajhi Corporation. Al-Rajhi Corporation is a 100% Saudi Group of companies that are operating basically in three (3) business lines: • Transportation. • Metal Industries. • Rubber Industries.

Our Mission • High Quality

• Healthy Operational Environment.

• International Standards.

• Maintain Safety.

• Industrial market Pioneers.

• Client Strategic Partnership.

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Tel +966 13 869 9000 | Fax +966 13 897 9222 J a n uEmail ary 20 16 metal@alrajhicorp.com | Web www.alrajhicorp.com P.O. Box: 50 Alkhobar 31952 Kingdom of Saudi Arabia

ENERGY

well-considered diversification which has now put it in a position to offer a range of services to an expanded list of clients. Great progress has been made and Al Akeel expects even more to be achieved in the coming years. ARGAS was established in 1966 as a Limited Liability Partnership (LLP) between the Industrialisation & Energy Services Company (TAQA) which owns 51 percent of the shares and Compagnie Générale de Géophysique (now CGG) which owns the remaining 49 percent. ARGAS’ surveying and data acquisition capabilities now cover land, shallow water where it is able to conduct Ocean Bottom Cable (OBC) and open marine surveys. Since 2006 the company has operated four Land Vibrosies 3D and one Land 2D Vibroseis seismic crews acquiring over 47,000 square kilometres of seismic data. At sea, ARGAS has completed a 15 month 3D two component (2C) transition zone survey and is currently acquiring a 2D2C shallow water survey off Kuwait utilising

‘Since 2006 the company has operated four Land Vibrosies 3D and one Land 2D Vibroseis seismic crews acquiring over 47,000 square kilometres of seismic data’

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A R A B I A N G E O P H Y S I C A L & S U R V E Y I N G C O M PA N Y Our Capabilities. Our People

Our Capabilities Our People Blueprint Technologies (www.bpterp.com) is an ERP company of professionals focused on providing services on SAP and SAP related services on cloud. Started in the year 2010 with Headquarters in Bangalore, India, with offices in Chennai and Dubai. Blueprint Technologies has partnered with Al-Russaid Technologies(www.al-rushaid.com) in Saudi Arabia and Bin Butti International Holdings(www.bbih.ae) in Abu Dhabi. Blueprint Technologies is a preferred SAP vendor for Companies in Saudi Arabia with strong SAP delivery capabilities. Blueprint Technologies has successfully executed end to end complex SAP projects and have extensive experience in providing SAP solutions for various industrial verticals like Oil & Gas, Petrochemical, Manufacturing, FMCG, Real Estate and Construction. With a strong understanding of the market requirements in various industrial verticals. Blueprint Technologies is also involved in executing projects on cloud with SAP SuccessFactors and Ramco ERP/HCM.

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50 kilometres of Sercel 408 ULS cable. Between 2010 and 2013 ARGAS operated two of the world’s largest OBC crews, acquiring over 13,500 square kilometres of high quality 3D four component (4C) seismic data in the waters of the Arabian Gulf and the Partitioned Neutral Zone with Kuwait. Due to its decades of experience in land acquisition and its growing experience in ocean and shallow water, ARGAS is at a point where it has become a trusted spare parts and equipment retailer. Al Akeel explains: “We have surveyed most of the shallow water in Saudi Arabia and we have successfully completed the biggest OBC in the Gulf, using cables. I think we can safely claim that we are the only national standalone geophysical services company of our type in the country, in Between 2010 and 2013 ARGAS operated two of the world’s largest OBC crews, acquiring over 13,500 square kilometres of high quality 3D four component (4C) seismic data

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terms of both land and shallow water acquisition.” “We set a range of internal measures that we use to improve the quality of our deliverables which are backed up by our reputation for being experienced in the delivery of a range of surveying projects. We will be celebrating our 50 year anniversary next January – that’s an indicator of how successful we are.” It is well known that the global oil and gas markets are prone to fluctuations; Al Akeel has focused on some key drivers to keep the company on a competitive stance, as well as to ensure that it does not have to make massive budget adjustments at the whim of the markets. The company is therefore focussing on aligning its talent, pioneering technological innovation and diversifying its operations while expanding regional coverage.

“We set a range of internal measures that we use to improve the quality of our deliverables which are backed up by our reputation for being experienced in the delivery of a range of surveying projects”

Diversification Having moved away from its reliance on land geophysical services, ARGAS diversified its operations to include sea and shallow water; the next step for the company is to solidify the

The next step for the

– Saad Al Akeel , CEO

company is to solidify the transfer of its skills to the mining and exploration industries

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A R A B I A N G E O P H Y S I C A L & S U R V E Y I N G C O M PA N Y

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transfer of its skills to the mining and exploration industries, aiming to be fully established in these sectors within the next five years. He explains: “I don’t want ARGAS to be affected by oil prices, so we are expanding horizontally and vertically; vertically by offering new services– horizontally in two respects – geographically and by offering services to new industries that we are typically not used to working with. ARGAS operates throughout the whole Gulf Cooperation Council region, as well as in Egypt; we also want to move our operations into Iraq, Sudan and into Syria, once the situation there is stable.” While competing providers struggle with the fluctuations of the oil and gas markets, ARGAS will be so positioned that it will be able to absorb these shocks while having a more generous budget than its competitors. Diversification also has the potential for a lot of skills transfer between the oil and gas industry and other sectors.

ARGAS operates throughout the whole Gulf Cooperation Council region

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Our Journey Together Starts He re! With over 36 years’ experience Unique Catering Services Ltd. has built a reputation for providing quality remote site Catering and Support Services throughout the Middle East and beyond.

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Rehal Al Sharq Logistic Services Co (RS Lanes) was established in 2006 as a Transport Company under the umbrella of Al Osais International Holdings. With a Team of Dedicated Professionals RS Lanes was transformed from a Road Transport Company in to a Specialized Logistic Provider to serve the Oil & Gas Industry by implementing and practicing stringent QHSE codes. With a well trained professional workforce and with an attitude of “Do it right at the First Time” RS Lanes has a reputation in the market as the most reliable Logistic Partner. RS Lanes has a proven track record of Customizing Logistic packages as per the demand. RS Lanes Trucks, Equipment & Personal are equipped to work in Remote Areas & Across the GCC. We take this opportunity to Wish Arabian Geophysical & Surveying Company (ARGAS) all the very Best & Thank for Choosing RS Lanes as their Logistic Partner.

Contact Us Rehal Al Sharq Logistic Services Co, P.O. Box 1083 Dammam 31431 Kingdom of Saudi Arabia Tel +966 13 811 5115 Fax +966 13 811 4114 Website www.rslanes.com Aleksandar “Basil” basil.ashry@rslanes.com / +966 54 044 0999 Shawn shawn@rslanes.com / +966 55 497 3396

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Talent management As CEO, Al Akeel has previously faced difficult decisions over balancing staffing levels with the cyclical financial flows necessitated by the global oil and gas markets but as this scenario becomes less strict he is keen to invest in the careers of his vast talent pool. As oil companies adjust their budgets in-line with global trade ARGAS must do likewise in order to achieve the right scale. He says: “We try to offer our employees a career instead of just a job. Because of the restraints of the industry, our projects are not always long enough to sustain consistent manpower headcounts. To mitigate that we put forward local young people wanting to come into the industry; this also helps retain knowledge in the country.” Al Akeel has strengthened this commitment to the country’s youth by rolling out an operational succession plan across the board which will ensure that the company’s talent is young and fresh without losing its decades of experience. Backing up the

“We try to offer our employees a career instead of just a job. We put forward local young people wanting to come into the industry; this also helps retain knowledge in the country” – Saad Al Akeel , CEO w w w. a r g a s . c o m

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AL KHALEEB HOLDING COMPANY For General Transporting, Rent Equipments and Road Construction

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plan are a series of partnerships with a number of the Kingdom’s leading educational institutions. Ensuring that its employees are well trained has been another priority for ARGAS; the company is determined that its workforce will be ready for any technical innovations that take place across its verticals, which is a strong reason why the company has invested $26 million in training for software systems. “We are doing all this to encourage an innovative environment and so that academies can improve the industry. We offer opportunities for training, internships, and graduate projects. We take them for visits to our crews in our technology centre so they can learn firsthand how we gather seismic data,” he says.

$26m The amount ARGAS invested in its training for software systems

Technology strategy Having operated in the Kingdom for such a long time, ARGAS has been able to develop close working relationships with some of the world’s leading oil and gas companies. Not only has

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A R A B I A N G E O P H Y S I C A L & S U R V E Y I N G C O M PA N Y this secured long term contracts and increased its reputation in the GCC and beyond, but has also ensured that the company has consistently been in a position to innovate technologically. “We are set to be one of the tech leaders in the Kingdom. We want to lead in all aspects of sub-surface imaging - we are working with both clients and academics on addressing the challenges of the region. Our strategy is now focused on technology ownership and bringing that technology closer to clients so it can be developed under their specifications.” “We have achieved this by having the knowledge of CGG and the right technology

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– and by having a good financial backup and localisation” explains Al Akeel. He added that aligning its tech strategy with the operations of a major player in the region enabled the company to keep track with the latest trends in the industry while maintaining the independence to be able to take its own direction. He said: “We want to be on the frontier technology company addressing the regional challenges of others. We have started to align our strategy towards exploration with Saudi Aramco. The reasoning behind constructing our R&D Center in Dhahran Techno valley was to match the expectations of other players in that region, especially Aramco. “We are engaging with every single one of our clients with what their challenges are. I’ve spoken with companies in Oman, Abu Dhabi,

“We want to be on the frontier technology company addressing the regional challenges of others” – Saad Al Akeel , CEO

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4,000

Number of employees at ARGAS

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Kuwait, and Bahrain and they all face the same challenges and problems related to budget reduction. We believe that we can work as a mediator between these companies and help them all, as opposed to just helping one or two. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t have a global focus in this regard because we see this region as the most prolific in hydrocarbons. Essentially, the companies in the region have specific issues which we provide technological solutions for.â&#x20AC;? The company is leveraging on many CGG technology centres around the world to support these efforts, and is collaborating with King Fahad, King Abdul Aziz and King Abdullah Universities in order to attain academic endorsement, as well as to reinforce its drive

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to recruit yet more of the countryâ&#x20AC;&#x2122;s youth. This combined with its work with regional players such as ADNOC, Aramco, and other companies will not only ensure a youthful workforce, but will establish the ARGAS brand far and wide. Recognising that its capabilities and knowledge-base were greater than the sum of its parts, ARGAS has set in motion a plan that, once it comes to fruition, will see the company become a diversified entity, covering multiple verticals and countries, with a youthful and welleducated workforce. Although diversifying, ARGAS is very likely to discover that, with a broadening skill-set, that its ability to cater the needs of its core clients will further improve.

ARAMCO Executives visit to ARGAS Crew

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AL AA

FOR

I NDUS TR Y

Shifting gears Written by Joanne Christie Produced by Heykel Ouni

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Alaa for Industry talks to Business Review about how it became one of the leading industrial suppliers in the Arabian Gulf and its ambitious restructuring plan

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laa for Industry (AFI) has come a long way in the 31 years since it was founded by owner and chairman Ibrahim Ali Al-Rashoodi. From humble beginnings as a small seal and hydraulic manufacturer and distributor in Dammam, the firm has grown into a multinational company.. Now one of the leading industrial suppliers and service providers in the Arabian Gulf, it operates out of 18 branches, 14 in Saudi Arabia and four overseas. Over the years its manufacturing capacity has widened to include everything from seals to supersuckers â&#x20AC;&#x201C; it was the first company to manufacture these industrial vacuum loaders in the Middle East back in 2005. More recently, it became the first company to build an ADR unit in Saudi Arabia and over the 31 years of AFI it has had many firsts supported and

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developed by its own technical department. Its main customer base is linked to the oil and gas industry, and while it has made some acquisitions in the past, the companyâ&#x20AC;&#x2122;s growth has largely come from developing relationships with its large customer base in all industry verticals. It has, in the past, had joint ventures with key companies to support the market demand and will continue to look at this as a way of future growth, according to its CEO Stuart Hind. AFI has set up supply and distribution agreements with a wide range of companies, including overseas firms such as UK industrial companies Dixon and more recently, Eriks, to name a few. The company has a huge product line â&#x20AC;&#x201C; it supplies about 90,000 line items from almost 280 international suppliers. Having such a diverse range of products

Key Personnel

Stuart Hind Chief Executive Officer CEO Stuart Hind joined AFI in January 2015. In 2006 Hind first joined AFI as Kuwait Country Manager and was swiftly promoted to AGM for the overseas branches. He left in 2010 to join DHL as Country Operations Manager for Iraq and Afghanistan, which was a challenging but exciting role. Since leaving the army in 1992 Hind has had a variety of jobs that gave him the experience to take the challenging role as Chief Executive Office at AFI earlier this year.

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inevitably throws up practical challenges â&#x20AC;&#x201C; for example, the company plans to upgrade its IT system from its current BAAN system to a newer, more web-based version next year, but Hind says there will be a long transitional phase due to the large number of part numbers used by the company but it will improve productivity and functionality. But thereâ&#x20AC;&#x2122;s an even bigger challenge that comes from having such a large range of offerings, and itâ&#x20AC;&#x2122;s one that Hind is keen to tackle. He says the company has now grown to the point where its operations need to be divided into more manageable verticals to ensure its continued success. 142

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Restructuring key to the future The AFI CEO may only have been in the job since January, but he has wasted no time in setting about restructuring the company. In February he outlined a proposal to divide the company into five divisions over the next three to five years; in March his plan was signed off by the board of directors; and the company has now started the process of segregating the first division, capital equipment, which is expected to be completed by the second quarter of 2016. The rest of the company will be divided up into four other divisions: oil & gas and petroleum supplies and services, transportation, power transmission and hydraulics & pneumatics.

Hussain Al Raee - CFO

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This will bring a greater focus to its customers, suppliers and employees. Once the restructure is complete, the company will also have a separate manufacturing division to deliver quality Made in the Kingdom of Saudi Arabia transportations products in line with market and industry demand. â&#x20AC;&#x153;It is a very diverse business and the five divisions will allow us to bring greater focus to the customers and our suppliers, allowing our partnerships to continue to grow and enabling us to diversify our business in line with the changing market conditions,â&#x20AC;? says Hind. Hind was able to set to work on the restructuring without too much of a settling-in period as he was already very familiar with the company. He first worked for AFI in 2006 as its Country Manager for Kuwait, before being promoted to Area General Manager for Kuwait,

850 Number of employees at Alaa For Industry

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Sealing solutions

Bahrain, Qatar and Iraq the following year. He left the company in 2010 and worked for DHL and Panalpina in the Middle East before returning to lead AFI at the start of this year. Much of Hind’s career has been spent restructuring and developing businesses, although he admits none of his past projects have been on as large a scale as the division of AFI. He is excited by the challenge and has identified key areas where the business needs to change. One of the aims is to sharpen the focus of its sales team, which has historically been selling across a very diverse product range. “Trying to get our sales engineers to work across all our products ranges is not easy. We have good sales one year on one product and then it drops off because they focus on something else that the customer or market wants.” AFI has a very

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strong and capable sales team, giving them a clear strategy and vision for them to focus and develop both themselves and the customers. Because Saudi Arabia was, until the early part of this century, effectively closed to foreign business and many industries run by monopolies, the company didnâ&#x20AC;&#x2122;t have a strong historical focus on driving sales as customers would have to come to the company with the product they needed. This has changed with the opening of the market and competition within the region and the sales teams needs to be active in the field and maintaining relationships with the large loyal customer base. Dividing the company into more manageable divisions will bring focus to the sales engineers and improve customer service and supplier development. Hind has been in the Middle East since

Hosing and fittings

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M I L I TA R Y

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CRANES

S P E C I A LT Y V E H I C L E S

www.ramseywinch.com/solutions

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2001, after stints in the army, running his own security business and with Bass Brewery in the UK, and he says times have changed. “Over the last 10 years Saudi has changed. As an international company you can come in and set up your own business without a Saudi sponsor. There are lots of things you can do to try and choose the way business is done. I want to make sure AFI is ahead of the game and changing with the evolution of Saudi Arabia.” Homegrown One theme emerging as Saudi evolves is the desire for more manufacturing in the country, says Hind. AFI is currently in discussions about setting up a joint venture with a South African aluminum manufacturer to start building aluminum tankers in Saudi, something he hopes to have in place by next year. “Aluminum welding is quite a technical

“Over the last 10 years Saudi has changed. As an international company you can come in and set up your own business without a Saudi sponsor. There are lots of things you can do to try and choose the way business is done. I want to make sure AFI is ahead of the game and changing with the evolution of Saudi Arabia”

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process so having this company from South Africa which has been doing it for 15 years as a joint venture partner will be hugely beneficial as a way of expanding our manufacturing business.â&#x20AC;? The company has always looked at opportunities to manufacture products locally to improve the quality and service provided to customers. The present manufacturing facility offers a large range of products from vacuum tanker, supersuckers to service trucks and special bespoke designs meeting customersâ&#x20AC;&#x2122; specific needs. This is supported by a technical design team of engineering experts with state-of-the-art AutoCAD 3D software and years of experience, 150

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and a QAQC department that ensures products are manufactured to the highest level. And although companies are not restricted in the items they can import, there is a growing push to produce more locally. The Saudi government offers subsidies such as favourable land prices often offered to those firms looking to do so as well as other initiatives to the support and development of local manufactured products. AFI also sees an opportunity to provide manufactured equipment for the burgeoning agricultural industry to improve the service offer to an ever growing industry within the region. â&#x20AC;&#x153;Within the central belt of Saudi Arabia

Hydraulic components

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“We have such a massive product range and all our sales engineers are either mechanical, electrical, chemical, project or hydraulic engineers we have the flexibility to move and change as the market changes, we do our own R&D and have our own technical department that designs and moves things forward keeping us ahead of the game” 152

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agriculture is growing and developing, they have huge chicken farms, milk, vegetables and fruits and other essential agricultural products to service the local demand which will reduce the need to import vital food groups. And we don’t really have an agricultural range. So my AGMs and Marketing Manager are presently looking at agricultural equipment/products that we can add to our product range either manufactured or trading items,” he says. AFI is also keen to develop local talent in its workforce. It began a mentorship programme for Saudi Arabian nationals two months ago, with

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about ten qualified Saudi Engineers hoping to increase to 25 going through the scheme every two years, all receiving sales training, technical training and managerial training to enable them to become future leaders of the business. Overall, Hind says about 30 to 35 percent of AFI’s workforce is made up of Saudi nationals and the company has a strong desire to promote staff development for both local and expat staff. In fact, this was one of the factors behind the division of the company into five separate areas. “One of the things about the division is to enable continuous development of our employees. We’re w w w. a f i . c o m . s a

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trying to make sure our divisions, and the staff within those divisions, are trained to the highest level. With the growth of the company, the training that has been happening over the last few years has been a bit all over the place, not wasted but also not focused. So we want to train people for each division so that they receive continuous updates in technology and products specifically linked to the division and the range of products and services within that division,â&#x20AC;? he says. At present, AFI has about 850 employees and a contracting and rental division that varies 154

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depending on the workload but which currently has about 500 employees. Its recruitment process is dictated largely by visa allocations, with more flexibility when hiring contractors for specific contracts. Visas in Saudi are linked to nationality which makes it a challenge when looking to hire a specific person; AFI applies for visas and the government awards by nationality and specific job title. AFI has to locate suitable applicants by using agents in specific countries to find the right person. This is all linked to the development of Saudi nationals and is

The AFI team

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linked to our mentoring program to improve the local workforce in all areas of our work. With so much time and energy spent looking for the right person and to secure staff, employee retention is very important to AFI, says Hind. “We have a very good retention rate. We have good staff accommodation and good HR policies. If you don’t keep focusing on that then people can resign and that will have an impact on your business so our key focus is on our staff and their development within the company.” Beyond oil Another factor that is undoubtedly impacting AFI’s business is the current slump in oil prices. As a business intrinsically linked with the oil industry, the situation is causing a shift in thinking in the business, says Hind. “Saudi Arabia is not immune to the fall in oil and gas prices. Depending on what you read, the oil price is not going to get back to $75 until 2020. We can’t sit back and wait for this to happen because we have employees and customers that rely on us to make changes to enable growth rather than going through redundancy processes or sitting back doing nothing until the market improves. So we need to diversify our business. We’ve

“Saudi Arabia is not immune to the fall in oil and gas prices. Depending on what you read, the oil price is not going to get back to $75 until 2020. We can’t sit back and wait for this to happen because we have employees that rely on us to make changes to enable growth rather than going through redundancy processes or sitting back doing nothing until the market improves”

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just brought on a service manager that is looking at our entire product range and development contracts looking for opportunities to do this. “One way we are dealing with it is focusing on our MRO [maintenance, repair and overhaul] and after sales service business because we’ve found people would rather extend the life of their existing capital equipment than replace it while the oil price is low.” The second way is by diversifying into Saudi Arabia’s growing rail and mining industries, and in the latter it should have an edge as it already provides services and equipment to the largest mining company Maaden. Hind says while Saudi Arabia’s mining and rail industries may be fledgling in comparison to other regions, they provide exciting opportunities for expansion. While visiting the UK for the Rugby World Cup recently, Hind met with Preston-based partner Dixon to discuss further opportunities to work together. “We have partnered with Dixon for many years on the hose and coupling side of the business. But they have a mining division and a rail division and that is something we are looking to drive forward so I’ve been discussing with Dixon their product range and solutions and we will look to start expanding that partnership in 2016. We will not stop there, AFI will go the extra mile to bring the products and services the industry needs to grow and we will also look at locally manufactured products to support these growing

Industrial vacuum loader

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A F I ( A L A A F O R I N D U S T RY ) industries in the Kingdom and wider region. “There is a lot of money set aside for rail projects in Saudi Arabia. We have hydraulic lifting equipment and other common products but we don’t have products specifically for rail. So diversifying our product range and bringing on suppliers for rail will enable us to break into a new vertical that we weren’t in before.”

Youseff Ibrahim Al Rashoodi - Executive Director

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Well poised for transformation The company’s large technical knowledge base is easily transferable into new areas, says Hind, and with about 50 percent of its staff being qualified engineers, it has the capacity to move new innovations forward quickly. “One of the many good things about AFI is that

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because we have such a massive product range and all our sales engineers are either mechanical electrical, chemical, project, or hydraulic engineers, we have the flexibility to move and change as the market changes, we do our own R&D and have our own technical department that designs and moves things forward in line with market changes.” The company is also positioned well in terms of financing this future diversification “Our owner Mr. Ibrahim Ali Al Rashoodi is very well versed when it comes to what and when he needs to invest in our business,” he says. “I have a very competent team to work with and with all we are doing the future of AFI will continue to grow and support our ever growing customers’ needs.”

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Pipe solutions Written by Sarah Arnold Produced by Heykel Ouni 163

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JESCO has the expertise to meet the high demand for innovative pipe solutions within the GCC

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ubail Energy Services Company (JESCO) was founded in 2006 to cope with the demand for seamless pipes within the oil and gas industries. The idea behind this company was first considered 30 years ago within the GCC, but the implementation did not begin until 2003. As the first company of its kind in the Middle East, JESCO produces two types of seamless pipes; OCTG (oil country tubular goods) and line pipe. Line pipes are those used to transfer oil and gas horizontally while OCTG is used to bring oil and gas to the surface.

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Key Personnel

Zeyad Al Barrak CEO

JESCO is owned by a variety of investors. The primary investor is parent company TAQA (Industrialization & Energy Services Company) holding 56 percent of shares. One of the world’s largest steel trading firms, Duferco (based in Switzerland), owns 10 percent of the company’s shares. The remaining 34 percent is owned by various well known Saudi investors. JESCO’s production lines are located ten kilometers from the Jubail commercial port providing easy transportation of goods to international locations including the US, Asia

Graduating in 2000 from King Fahd University of Petroleum & Minerals with B.Sc. Finance and Economy, Al Barrak started working at Saudi Industrial Development Fund (SIDF) as a Credit Consultant under Projects Department – Credit Division. In 2007 he started his career in the metal industry and joined JESCO in 2008, serving as Chief Financial Officer until 2014. In September 2015, Al Barrak rejoined JESCO in the capacity of CEO.

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Your Drilling & Production Tubular Challenges is Our Business The Eurotechnology Group is a leading manufacturer, supplier and service provider of innovative Inspection Technologies, Hardbanding Equipment and sophisticated Tubular Threading Systems. The Eurotechnology Group utilises the latest advanced technologies developed inhouse providing a managed service approach focusing on client-led requirements. From day-to-day management of the client’s tubular and associated equipment to complete logistical support, the Group provides services related to the refurbishment of O.C.T.G., Drill strings, BHA, Service tools and equipment inventories employed in the various facets in drilling and the completion of oil and gas wells. Logistical support for Eurotechnology’s One Stop Shop approach to Tubular Management is provided to the end user through a dedicated service focal point responsible for ensuring that the client is fully informed at all times of its tubular and equipment inventories at Eurotechnology’s service facilities via a dedicated real time software interface. The Eurotechnology Group is also a provider of NDT inspection training programmes tailored to meet the customer’s personnel training requirements. In Pursuit of Excellence has always been and will always be, our main Goal. T: +9 66 1 35107172 | F: +966 13 893 8496 E: info.saudi@eurotechnologygroup.com www.eurotechnologygroup.com

Total Tubular Management Services include: • Non-Destructive Testing (NDT) of Casing, Tubing, Line Pipe, Drill Pipe using propriety full length UT & EMI technologies. • Inspection and refurbishment of BHA and the associated tools & equipment • Third party inspection / Quality Assurance / Quality Control • Hardbanding Services, Tungsten Redress of BHA and service tools • Innovated CNC Machining Systems for the refurbishment of Drill Pipe, BHA and O.C.T.G Tubular Goods • Management of Tubular Inventories and Logistical support

Headquarters in Al Khobar with service operations in Jubail & Tanajib EUROTECHNOLOGY INTERNATIONAL CO. LTD. P.O Box: 4275, Al Khobar 31952, Kingdom of Saudi Arabia,

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and Europe. CEO Zeyad Al Barrak says: “This is one of the advantages that gives us an edge over our competition.” This strategic location means JESCO is able to supply GCC nations with products in a timely manner as well as smoothly import all the raw materials for production. Work behind forming JESCO began in 1994 but did not come into fruition until 2003, leaving a gap in the market. When TAQA was formed in 2003, one of the mandates for this semi-state owned company was to establish a seamless pipe mill. Thus TAQA adopted the idea and after several additional years of feasibility studies JESCO was born. “We have a capacity of 500,000 metric tons and we are working at that,” Al Barrak says. “We have a large diameter seamless pipe mill that goes from 4 ½ to 16 inches.” Demand for seamless pipe is high for API & Premium Connection (PC) and to

JESCO finishing line final storage evacuation area

500k

metric tons

JESCO’s working capacity

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Oil States Industries (UK), Ltd.

CONNECTOR TECHNOLOGY STRUCTURAL TEST LABORATORY

(UK) Ltd. Black Altens I

COMPLETE TESTING SERVICES

Scotland

Testing is conducted to international standards, typically, ISO 10423:2009; ISO14313:2007; ISO 13679:2002; ISO 21329:2004 and ISO 13628-7:2006.

www

Oil State

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Comprehensive Facilities

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The Oil States test laboratory offers complete testing services including tension and compression with combinations of internal and external pressure with bend. Extreme temperature cycling with gas or hydrostatic pressure is also available. Onsite Data Acquisition

1155 Dai Houston,

Fx +44 (0 sales@oilstate Ph +44 (0)122 Europ

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on compression compression test rig 2400 ton tension/1600t tension/1600 on

Oil States Industries’ advanced structural test laboratory is internationally recognised for testing (FDIS 2011E)-API 2013)-API 3 tubing and casing to ISO 13679:2002 (FDIS 5C5 standards. UKAS accredited since 1992. The Oil States Test Laboratory meets ISO Standard BS/EN/ISO/ IEC 17025 and is designed to simulate normal and extreme operational load cases for product evaluation, prototype development and design validation of FEA analytical models. Testing is routinely conducted on structures including wellhead connectors; valve systems; production tubing and casing; work-over risers; tendon connections and flexible risers. The laboratory provides testing for Oil States products and those of third-party clients, including oil companies; oil service companies, and civil engineering, aviation and transportation companies.

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13275 Marseil Oil States Ind 1155 Dairy As Houston, Texa

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Troubleshooting and commissioning engineers are available around the clock and equipped with portable data acquisition technology for structural load monitoring and other tasks. Data can be promptly analysed by Oil States stress engineers to quickly resolve problems and minimise downtime. Third Party Witnessing

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13275 Marseil Oil States Ind

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Lynx Grip Wellhead Connector – 9.0 x 10 6 lbf.ft Bend Test Rig

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Oil States Industries UK Limited is pleased to be associated with Jubail Energy Services Company (JESCO)-Saudi Arabia. Testing their proprietary Tubing & Casing Connections to Specifications. ISO 13679:2002<FDIS 2013/API 5C5>

STRUCTURAL TEST LABORATORY

STRUCTURAL TEST LABORATORY TENSION/COMPRESSION EQUIPMENT TENSION/COMPRESSION EQUIPMENT Tension and Compression Rigs

es Industries,

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es-uk.com

(762mm) tubulars Our ton -tension rigs, purposely www.oilstates.com • 1000/2000/2400 8000 ton rig (80Mn) 36” - 44”test tubulars . built, in the UK for ISO 13679-API 5C5 testing. Scotland, UK 24 290000/51

Scotland, UK 24 290000/51 Aberdeen AB12 3LH

www.oilstates.com SALES OFFICES: Our 1000/2000/2400 ton tension test rigs, purposely Hydraulic Tension Rig, the WORLDWIDE Our built,8000 in the UK for ISO 13679-API 5C5largest-capacity testing. 13) 510 2200 North America SALES OFFICES:connector

testing up to maximum axial tensile loads Our 8000 Hydraulic Tension Rig, the largest-capacity

WORLDWIDE dustries, Inc. . of 80MN. This is primarily used for conducting tension 13) 510Ste. 2200 shford, 700 North as 77079 USA Americatests on Oil States’ proprietary Merlin® Connectors for Fx +1 (713) 510 2307 connector testing up to maximum axial tensile loads lle, Cedex 9 tension leg platforms and TLE tendon connectors.

dustries, Inc. of 80MN. This is primarily used shford, Europe Ste. 700& Eurasia as 77079 USA Bend testsRigs on Oil States’ proprietary Fx +1 (713) 510 2307 . Cedex 36, Bd lle, 9 des Oceans dustries, Inc.

for conducting tension Merlin Connectors for tension leg platforms and TLE tendon connectors. Up to 30” diameter specimens 6 (762mm) 914 Europe & Eurasia mirov Street Ph +33 491 40 892,688,000 35 France ( ft.lbs (3650Kn.m) maximum moment 9,000,000 12220 Bend Rigs

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Performance of Connectors ISO 13679:Evaluation 2002 (FDIS2011E) API 5C5 for use in Pipelines

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ISO 21329: 2004

Pipeline Impact Testing

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Pipeline Code: BS 8010

Pipeline Impact Testing Completion - Workover Riser Systems Pipeline Code: BS 8010 API - 17G - ISO/FDIS 13628-7: 2005 (E) Completion - Workover Riser Systems Testing at Elevated & Subzero Temperatures API - 17G - ISO/FDIS 13628-7: 2005 (E) -20 °C to 300 °C Testing at Elevated & Subzero Temperatures Onshore Strain Gauge Monitoring Service -20 °C to 300 °C Onshore Strain Gauge Monitoring Service

, Azerbaijan Fx +33 491 40 14 82 Bd des Oceans 12 5 98136,125 dustries, Inc.

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mirov Street Ph +33 491 40 892,688,000 35 France (3650Kn.m) BS823518 Partft.lbs 1: 1993 , Azerbaijan Fx +33 491 40 14 12 5 981 125 BS 3518 Part 3: 1963 (1990)

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Fairmont Ste. 712 BS 3518 Part 3: 1963 (1990) dustries, Inc. MiddleSheikh East Zayed Road es Industries, BS ISO 2003 maximum dynamic load Bending +/– 200 12107: ton.f (1993Kn) Ph +971 50 55009 54 Fatigue Dubai, UAE

Axial Tension - Compression

Fairmont Ste. 712 +/– 1.0 x 10.6ft.lb (1350Kn.m) cyclic bending dustries, Inc. MiddleSheikh East Zayed Road es Industries, +/– 200 ton.f (1993Kn) maximum dynamic load Bending Wellhead & Christmas Tree Equipment Ph +971 50 55009 54 No. 50C Glover Road Fatigue Dubai, UAE Ikoyi, Lagos, (Nigeria) Ltd.Nigeria dustriesPhdo+234 1 2718363 API 10423: (1350Kn.m) 20039 +/–6A 1.0- ISO x 10.6ft.lb cyclic bending Fx +234 1 2718364

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No. 50C Glover Road South America

Ikoyi, Lagos, (Nigeria) Ltd.Nigeria API 17D-ISO 13628-4 dustriesPhdo+234 1 2718363 API 6A - ISO 10423: 2003 22 2773Rua 5625 J1, No.1 205 Fx +234 2718364 Pipeline Valve Novo Caveleiros Brasil Ltda. CEP 27930-490 Subsea Wellhead & Christmas Tree Equipment Macae, Brasil South RJ America API 6D - ISO 14313: 2007 Ph +55 22 2763 4300

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22 2773Rua 5625J1, No. 205 Pipeline Valve Novo Caveleiros Brasil Ltda. CEP 27930-490 Macae, RJ Brasil API Ph +55 22 2763 4300

6D - ISO 14313: 2007 8000 ton tension/1000 on compression test rig

www.oilstates.com

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cope up with this demand, JESCO developed so far two PC Connections JPC2 & JPC3 and the list is growing. This will enhance the product mix provided to targeted markets. Plans for JPC4 are underway, enhancing this unique product further.

JESCO has over 100 years of experience in the construction of steel

Production site The production site at Jubail is built on 730,000 square meters of land provided by the Royal Commission for Jubail & Yanbu. Within these perimeters you will find a rolling mill, heat treatment, finishing, hydrostatic and nondestructive testing (NDT) lines. Also onsite is a full-fledged laboratory, enabling JESCO to ensure that the products delivered to its clients w w w. j e s c o . c o m . s a

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PIPE PROTECTION TECHNOLOGIES

HIGH–PERFORMANCE API & PREMIUM THREAD PROTECTION FOR COMPLETE RANGE OF OCTG APPLICATION Safe, efficient and cost‐effective packaging for transporting tubular products worldwide.

About SKY-E 

Leading supplier of OCTG thread protectors and pipe packing products



Over 30 years’ experience on pipe protection technologies



Products tried and tested, going above and beyond industry standard



Qualified by all leading Oil and Gas Companies

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Production capacity to meet any size job



On-time delivery to over 35 countries

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| Fax +86 577 86536385 | Web www.sky-e.cn

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are of the very highest standard. bringing new innovations into the seamless piping industry. As for market conditions today: “Everybody is facing challenges with the oil prices and the market slowdown in China; they are not growing enough. They are not reaching their manufacturing capabilities and it affected oil consumptions and the drilling activities, which ultimately then affects the consumption of pipes,” explains Al Barrak. JESCO is closely monitoring the global economy. Recently, Aramco (Saudi Arabian Oil Company) increased its production along with their counterparts in UAE, Oman, Kuwait, Egypt and Iraq. Current market conditions are not ideal and to cope with this, JESCO has short, mid and long-

“It is not necessarily about making a profit these days, but you need to survive. It is a survival market now” – Zeyad Al Barrak, CEO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

A Step ahead in Capex and Opex Danieli Centro Tube SEAMLESS PIPE TECHNOLOGY TO PRODUCE UP TO 28” DIA API GR 1 TO 5 AND UP TO 160 PIECES/HOUR. Our plants are equipped with conetype piercing mills, original FQM™-Fine Quality Mill (3-roll retained mandrel mill) and sizing/ stretch reducing mill to roll tubes with close dimensional tolerances. JESCO SAUDI ARABIA Complete turnkey complex for high-quality seamless pipe production: hot rolling line featuring FQM mill and pipe finishing floor for 400,000 tpy from 5”1/2 to 16” OD. VALLOUREC STAR OHIO (USA) High performance 3-roll FQM based seamless pipe mill for 450,000 tpy from 1” 1/2 to 7 OD.

BENTELER STEEL/TUBE (USA) High-piece rate (small lots, outstanding plant flexibility) and FQM mill featuring cartridge lateral change-over for 320,000 tpy of seamless pipes. SEVERSKY TUBE WORKS (TMK) (RUSSIA) Hot rolling line featuring 5-stand FQM mill for 600,000 tpy seamless pipes ranging from 6” to 14” OD.

Danieli Headquarters 33042 Buttrio (Udine) Italy Tel (39)04321.958111

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term strategies in place. Al Barrak says: “It is not necessarily about making a profit these days, but you need to survive. It is a survival market now.” On average this year, seamless pipes mills are working at a capacity of 35-40 percent, a level that is not sustainable. JESCO is managing this by having a major focus on sales while at the same time, cutting costs wherever possible. Al Barrak adds: “I believe that building key relationships is key in these difficult market conditions.” Saudi Aramco is the leading client for JESCO and it wants to build on this important relationship as well as those with other national oil companies. In the medium to long term, JESCO is eager to focus on lean strategies and production methods while also incorporating Six Sigma techniques. Al Barrak identifies with the unique selling point

“Thirty percent of oil production in the world is in the Middle East. We are not like the other producers of seamless pipes that are stationed in Europe, the Americas and China” – Zeyad Al Barrak, CEO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

World leaders in Tubular Finishing Technologies

Your World Partners in Technology

-Pipe Threading machines -Coupling Threading machines - Coupling Starter/ Screw On (buck-on) units - Full and Short Drifters

Proud to be part of the Jubail Energy Service Company success! From the beginning! European Plant:

U.S Plant:

Faubourg de Mignault, 17 - B 7070 LE ROEULX BELGIUM Ph.: +32/64/67.37.77 Fax: +32/64/67.32.67 Email: sales @pmc-colinet.be

29100 Lakeland Blvd., WICKLIFFE 44092 OHIO, U.S.A. Ph.: +1/440/943.3300 Fax: +1/440/944.1974 Email: sales@pmc-colinet.com

www.pmc-colinet.com A Park Ohio Company

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JESCO has: “Thirty percent of oil production in the world is in the Middle East. We are not like the other producers of seamless pipes that are stationed in Europe, the Americas and China.” Aramco is one of JESCO’s major clients and partners; it provides gas used on site in Jubail and 50 percent of JESCO’s sales are to the local market - mostly to Aramco. The remaining half of sales is to near markets and to the US market. JESCO produces seamless pipes for all the main national oil companies such as Abu Dhabi Company for Onshore Petroleum Operations (ADCO) and Petroleum Development Oman (PDO). Along with this, JESCO supplies various distributors and stock holders, including many important distributors of OCTG in the United States.

SAR

1.2bn The amount of revenue generated by JESCO

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Manufacturer of industrial processing tools and mechanical spare parts. Operated by highly skilled and professional experts according to standardized quality system and quality control.

OUR CLIENTS

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www.al-aslami.com

info@al-aslami.com

Tel: +966 133415159

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JESCO has a 750-strong workforce, with a mixture of Saudi nationals and international expats. Due to market conditions, headcount was reduced by 100 but as the market picks up, Al Barrak believes that he will have a large selection of high-quality workers to select from. “Now, there is definitely the opportunity to headhunt qualified, talented and well-trained employees,” he states in relation to redundancies from other companies in the oil and gas industries. “We are giving high importance to training in order to enhance knowledge. We have an alliance with the Human Resource Development Fund (HRDF). This is a government fund that helps us develop Saudi nationals. This help in funding is something we really need to thank

“We are giving high importance to training in order to enhance knowledge. We have an alliance with the Human Resource Development Fund (HRaDF). This is a government fund that helps us develop Saudi nationals” – Zeyad Al Barrak, CEO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O ) the government for,” Al Barrak explains. JESCO credits much of its success to the selection of premium manufacturing equipment made by the Italian machinery builder Danieli. This firm has over 100 years of experience in the construction of steel making and heavy equipment. Al Barrak gives Danieli a lot of credit: “Without Danieli, we would never be able to produce or have such a plant in the Kingdom.” Danieli, as well as having created the Jubail plant, has an important part to play in the future of JESCO. Since opening the plant, schemes implemented by Danieli mean that JESCO was able to widen the pipe sizes it produces.

We are Arabian Pipecoating Company specialized applicator for anti-corrosion coating material to the external and internal surface of line pipe, fabricated spools and associated fittings such as valves, elbows, flanges etc, were ranging from 2 to 80 inch (50 to 2031 mm) external and 2 to 72 inch (50 to 1828 mm) internal in diameter. our coating plant in Jubail – Saudi Arabia, can perform the following protective coating:• Fusion Bond Epoxy (FBE) internal & external • 3Layer Polyethylene (3LPE) external coating • 3layer Polypropylene (3LPP) external coating • Liquid epoxy coating internal & external • Field Girth Weld Coating • Double Jointing ( Welding ) of Pipe • Custom Shop Coating for fittings and spools etc. • Concrete Weight Coating Please note that our company approved protective coating applicator for many leading companies such as Saudi Aramco, Saline Water Conversion Corporation (SWCC).in Saudi Arabia, KOC Kuwait, QP Qatar, ADNOC UAE and PDO Oman. Our main activities and product line is directed to the Oil, Gas, Water and Petrochemical industries in the Kingdom of Saudi Arabia And entire Middle east . All our product line process are supported by a documented Quality Assurance System which has been audited and approved by Lloyd’s Registration assurance and which carries ISO 9001/ISO 18001/ ISO 14001 Tel: +966 13 882 2933 Fax: +966 13 882 2487 Email: rkhobar@apco-coating.com Website: apco-coating.com

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JESCO’s latest product is also its smallest; a seamless pipe that is 4 ½ inches. It also installed a new finishing line that allowed the finishing of a further 100,000 tons of finished pipes. In 2012, JESCO went live with SAP (ERP System) to automate the company-wide business activities. This has been revolutionary for JESCO, providing smooth transitions between each function that leads to an increase in JESCO’s efficiency and productiveness. The demand for innovative pipe solutions is very high within the GCC. Al Barrak says: “ We have our own research and development system. “ There are ambitious plans to expand our product offering that may also include drill pipes and further extensions of our size range. “I believe it is important to always enhance the product mix that JESCO can offer,” he adds. w w w. j e s c o . c o m . s a

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Cooling Qat Written by Piers Ford Produced by Richard Thomas

atar

M A R A F E Q Q ATA R

Energy efficiency, cost effectiveness and environmental friendliness are the lynchpins of Marafeq’s strategy for Lusail City’s cooling system

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s the company at the heart of the distributed cooling system for Lusail City, utilities services specialist Marafeq Qatar is playing a key role in building the infrastructure of one of the most exciting construction projects in the Middle East. In addition to the cooling system, Marafeq is also building the city’s waste management and gas distribution networks. The company has been involved with Lusail since it was formed in 2009, and this dynamic regional player has rapidly established a reputation for its innovative and flexible approach to delivering technologies and services that will eventually be essential to more than 200,000 residents and businesses, as they move in to their state-of-the-art environment. We spoke to CEO Ahmed Al Ammari and discovered that energy efficiency, cost effectiveness and environmental friendliness are the lynchpins of both Marafeq’s business strategy and its goals for long-term service delivery and maintenance in Qatar’s newest conurbation. Population of Lusail City has already begun, and early residents are benefiting from what will ultimately be one of the largest district cooling systems in the world, costing QR 2.5 billion (approximately $700 million). In 2012 Marafeq became a wholly-owned subsidiary of Qatari Diar. CEO Ahmed Al Ammari says this move evolved from the realisation that the company’s value lay in its regional knowledge and understanding of the energy

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Collaboration with Research and Development Institutes

landscape – and the strength of its roots in Doha. While its short history is inextricably linked with the rise of Lusail – including the stadium which will host the opening match of the World Cup in 2022 – it has also designed and built two cooling plants for one of Qatar’s other flagship projects, Barwa City, south of Doha. Very much in the ascendancy, with a headcount of 120 and rising, Marafeq has much to offer skilled engineers in the energy sector looking for a new challenge in a global market. As Al Ammari explains, this attraction, combined with a focused head-hunting strategy, is helping to build a focused, energised workforce. “We look for people with the right skills set from similar organisations all over the world,” he

2012 The year Marafeq became a whollyowned subsidiary of Qatari Diar

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Comitted to perform

Mission

Our mission is to successfully execute complex multitrade projects through safe, innovative and sustainable practices.

Vision

Values

Become the first in class regional design built contractor.

Business Integrity Unity of Purpose Time is of the essence, excuses are failures Efficiency matters to us and our clients Customer Focus

Our Business Activities focus on following sectors 1. Water and Environment

2. Industrial Facilities & Electromechanical Works

3. Oil and Gas

4. Power and Energy

5. Building Construction and Public Works

6. Utility Services

A LEADER IN TURNKEY ENGINEERING, PROCUREMENT AND CONSTRUCTION PROJECTS Tel: +974 44 55 2865 E-mail: qatar@butec-group.com | Web: www.butec.com.lb C-ring Road, Financial Square, Building No.1, P.O. Box 19769, Doha, Qatar

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says. “They could be individuals with very good experience of working in the field. Sometimes, it can be very helpful if there is a big project moving to a closing stage, or if a slowing local economy means good engineers are looking to move on. They are attracted by the opportunity to work in one of the world’s most dynamic countries, for a young company, on an important project. And we can offer them every incentive to join us.” Dubai has been one good source of wellqualified engineers with a knowledge of the region’s climate and environment, ready to try working in another of the Middle East’s major cities. However, Al Ammari says it remains a challenge to find people with knowledge of the latest technologies and designs in the utilities sector; and it is equally important to recruit a skilled salesforce to convince and educate clients and end-users about the benefits and favourable costs of new utility systems and services in a region where energy consumption is a major concern for residents and developers. A district cooling system is, explains Al Ammari, the centralised management and machinery required to service the diverse needs of the area, producing chilled water and taking it to every building and residence in the neighbourhood. The alternative – individual internal systems – is expensive, and consumes more energy and water in an environment where both are at a premium. “It is very hot in Qatar and air-conditioning is a huge aspect of any development,” he says.

“There are very few developments of this kind in the country, and it gives us the chance to show how innovative we can be when it comes to anticipating the needs of end-users and developing the kinds of service that will satisfy them” –A hmed Al Ammari, CEO

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Award winners, ‘Best District Cooling Planner’

“In this part of the world, it accounts for more than 70% of power consumption. You need the latest technology to ensure that you have a sustainable approach, and district cooling is one of the most promising initiatives. We can offer a continuous, low-maintenance service rather than everyone having to manage their own separate cooling system.” The advantages of working on a greenfield project such as Lusail City have been considerable. Starting with the design management phase, moving into the project phase and now, entering the plant construction phase, Marafeq has been able to integrate new technology at the same time as phasing in services for early residents and tenants, and work closely with local suppliers, as well as selecting the best systems from the outset. “Whether we are talking to the master developer or end-users of our services, there is a great

Piping work for the district cooling chillers

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District cooling chillers

benefit from being engaged throughout the full cycle of the project,” says Al Ammari. “They can see that they are dealing with a company that knows very well how to maintain the whole system from day-one. This will also be the case with our gas distribution network – an advanced concept that will be built around a central plant, initially using LPG [Liquefied Petroleum Gas], but ultimately moving to SNG [Synthetic Natural Gas] for domestic customers. “There are very few developments of this kind in the country, and it gives us the chance to show how innovative we can be when it comes to anticipating the needs of end-users and developing the kinds of service that will satisfy them.” Phasing systems and services at each stage of the project is the biggest challenge for Marafeq. On an implementation of this scope and scale, early customers must be able to start

117 Number of employees that work for Marafeq Qatar

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using part of a network that is under long-term construction long before it is complete – and the company has to satisfy service demands without compromising ongoing development. “The challenges are not just technical, to do with the different sizes of plant,” says Al Ammari. “They are also commercial: making sure we are not overcharging, and we are ready to serve 1000s of customers even if we are only starting with ten!” This is also aspect that is well served by Marafeq’s location in Doha. Al Ammari says that it is much easier to work in the environment of a developing country. Doha is not an old city consisting of legacy buildings and infrastructure; its relative youth makes it a prime market for rapid, cutting-edge development, and this effect is felt throughout Qatar, where green-field projects thrive on a good mixture of innovation and practicality. “There are two key benefits we derive from our location,” says Al Ammari. “Firstly, many seminars are held in the city where energy and utility suppliers gather and talk about the latest developments. This gives us access to new technologies as they become commercially viable. “Secondly, we benefit from close links between our engineering department and important research and development centres in the region, such as Qatar University. We have a good relationship with every research

“We can be confident that we will always be up to speed with the most innovative technologies. And that is essential when you are playing an important part in these mega-scale projects” –A hmed Al Ammari, CEO

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Marafeq’s Barwa City Plant

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foundation in the energy sector, as well as with suppliers, which means that we can be confident that we will always be up to speed with the most innovative technologies. And that is essential when you are playing an important part in these mega-scale projects. We are also cooperating with Lusail Stadium to discuss its requirements for 2022 in terms of cooling.” As a utility services company, Marafeq needs to be constantly looking ahead to new opportunities – particularly its flagship projects ease from design and construction into operation and maintenance, and revenues shift from infrastructure development to service delivery. Planning ahead for a time, ten years down the line, when Lusail is fully populated and the

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World Cup has delivered its new champions after four intense weeks of international football, is crucial for the company’s long-term growth. This is where the company’s waste management strategy comes into its own. While Marafeq’s services are already becoming operational at Lusail, Al Ammari said that as a concept, waste management is hardly developed at all in Qatar. “This is an ideal situation for us as a company,” he says. “Waste treatment needs a lot of innovation in this country, and we have an opportunity to define service standards for recycling and sustainability that will give us a great platform to build on for the future.” w w w. m a r a f e q . c o m . q a

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THE POWER OF SIX A super grid in the Gulf Written by: John Oâ&#x20AC;&#x2122;Hanlon Produced by: Richard Thomas

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The GCC Interconnection Authority is the body charged with keeping the lights on across the Middle Eastâ&#x20AC;&#x2122;s leading economies: we spoke to its CEO Ahmed Ali Al Ebrahim about the authorityâ&#x20AC;&#x2122;s strategic role and some of its successes to date

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t was on 31 December 2001 that the six GCC Countries (Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman) agreed to establish the GCC Interconnection Authority (GCCIA) for the purpose of interlinking their power systems. The authority had the backing of GCC leaders and the support of electricity and energy ministers. Though the shareholdings vary, each country has equal representation on the GCCIA board, with the chairmanship rotating every three years, so that no single country drives this initiative. Today the interconnector links the transmission networks of the member states on one unified super grid that spans around 1,200 kilometres of overhead lines and submarine cables. By 2004 the tender documents for the project had been prepared for Phase 1 of the project connecting Bahrain, Kuwait, Saudi Arabia and Qatar. In 2005, a contract was awarded to the Canadian firm SNC-Lavalin to supervise number of projects. These included the construction of six ABB 400 kV gas insulated high efficiency substations, a high voltage direct current (HVDC) converter station, the installation of 830 kilometres

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of double-circuit 400 kV transmission lines, and 47 kilometres of land and submarine cable. The company also supervised the construction of a central protection, telecommunications and control centre. This was the first-ever project in the Middle East to use HVDC technology, which enables power to flow between Saudi Arabia, which operates a 60 hertz grid, and the other five states, which operate at 50 hertz. The HVDC station is also the largest of its kind in the world. Work started early in 2006, and it was months later that Ahmed Ali Al Ebrahim, bringing with him more than 20 years’ experience in power systems and infrastructure projects planning, joined the authority as Director of Operations, Maintenance and Market Operations. “I had to establish processes from scratch, recruit the people, set out processes, rules and operating procedures, as well as be deeply involved in all technical aspects and tests of the project to ensure

Key Personnel

Ahmed Ali Al-Ebrahim CEO Ahmed Ali Al-Ebrahim is the Chief Executive Officer (CEO) of GCC Interconnection Authority. He has more than 28 years’ experience in power systems as well as infrastructure projects planning. Al Ebrahim holds an MBA from DePaul University, USA and an MSc in Electrical Power Engineering the University of Strathclyde, Scotland as well as a BSc in Electrical Power Engineering from the University of Texas

GCC INTERCONNECTION AUTHORITY

HVDC (high-voltage direct current) module is a highly efficient alternative for transmitting large amounts of electricity over long distances and for special purpose applications

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its successful completion” he recalls. “It has been a long journey, always presenting new challenges.” The organisation he leads is lean, with just 67 employees, all highly experienced and qualified. The authority works on what he calls the ‘informed client’ model, outsourcing maintenance work to the most reliable contractors, while keeping full control of core operations. “This model has proved very flexible and very economically effective,” he adds. There was no precedent to follow. “The only comparable system is the Sistema de Interconexión Eléctrica de los Países de América Central (SIEPAC) being installed to link six Central American countries but our

GCCIA 3rd Forum on Power Trade

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YOUR PARTNER FOR WORKS & MAINTENANCE IN ELECTRICAL INFRASTRUCTURE

•

Overhead & undergound lines, Substations, Automation, control & monitoring

•

In Saudi since 2010

•

An international key player €2 billion revenue - 12,000 employees -

Omexom - an international network operating across the Power & Grid chain Omexom is the brand of VINCI Energies dedicated to Power and Grid solutions. Omexom delivers an impressive range of business lines and services to our Power customers around the world: from generation through to substation, transmission and distribution infrastructures.

With its close-knit network of 1,500 business units, VINCI Energies is now a leading provider of energy and information technology services in Europe and throughout the world. GIS Substations Maintenance

Our unique expertise makes us the preferred choice for electricity producers, grid operators and managers, large power equipment managers and power-intensive industries. Every day, our 250 Business Units operating in more than 40 countries with a 12,000-strong global workforce designs and builds the power infrastructures of tomorrow, while maintaining and upgrading those of today. As an integrator in the energy sector, we support all our customers with complex project management and turnkey solutions. We also supply innovative offerings to manage more conventional development and maintenance projects. Overhead Lines Maintenance

A key player on the middle east market Omexom Saudi has been providing maintenance services for the Gulf Cooperation Council Interconnection Authority’s assets for the last 4 years, in all GCC countries. With dedicated and professional teams maintaining GCCIA’s 400kV substations and overhead lines, Omexom operates in all the GCC countries and is expanding into the design and construction of electrical infrastructure: greenfield, extensions, deviations and upgrades in the generation, transmission and distribution fields. Thanks to the power and skills of the brand network, Omexom can supply a complete offer on the Power & Grid Market and follow its customers all over the world.

Operating in over 50 countries, including 30 outside Europe, VINCI Energies employs 63,000 people and generated revenues of €9.3 billion in 2014.

SUPPLIER PROFILE

A major actor in the Power & Grid market, Omexom delivers an impressive range of business lines and services to our Power customers around the world: from generation through to substation, transmission and distribution infrastructures. Our unique expertise makes us the preferred choice for electricity producers, grid operators and managers, large power equipment managers and power-intensive industries. Safety and security are our top priority. Omexom shares innovations and best practices in this area across all our Business units, adapting them to local needs. With a global presence in over 40 countries, Omexomâ&#x20AC;&#x2122;s 12,000 key Power & Grid experts and 250 Business Units design and build power infrastructures of tomorrow, while maintaining and upgrading those of today. As an integrator in the energy sector, we support all our customers with complex project management and turnkey solutions. We also supply innovative offerings to manage more conventional development and maintenance projects. Our proactive growth strategy has positioned us as a leader in the Power & Grid market. In 2015, Omexom generated 2 billion Euros in revenue, a ten-fold increase in just 10 years. Website: www.vinci.com

GCC INTERCONNECTION AUTHORITY

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“By the end of 2011 we had all six member states interconnected, so since that time we’ve been operating as a single GCC grid for practical purposes” – Ahmed Al-Ebrahim, GCCIA CEO

organisation is much bigger in terms of capacity, the technology that is employed and the size of the systems that we are using,” he explains. The first substation was commissioned in Kuwait early in 2009, and part of the system went live in the summer of that year. Connecting four previously separate grids. “By the end of 2011 we had all six member states interconnected, so since that time we’ve been operating as a single GCC grid for practical purposes.” To give an idea of what that meant on the ground, blackouts that in the noughties were something that the Gulf States had grown used to living with became a thing of the past. Since 2009 more than 1,300 potential outages have been prevented through instantaneous intervention by the GCCIA and by the very existence of the interconnector as a regional backbone. “Consumers would not even have noticed these incidents”, he says. Critical utilities like hospitals and factories have benefited immeasurably. When something does go wrong, it can be quickly diagnosed remotely from the control centre or even by online engineers

67 The number of staff employed by GCC Interconnection Authority

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Trust the Power of Experience

CESI is a world leading technical consulting and engineering company with 60 years of experience, acting as ownerâ&#x20AC;&#x2122;s engineer providing qualified third-party consultancy to power utilities worldwide.

Tel +971 4 2602 340 | Fax +971 4 2602 342 206 January 2016 CESI Middle East FZE, DAFZA-5WA, 326, Dubai (United Arab Emirates)

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on the spot, logging in on laptops or handheld devices. In the early days, an outage had to be checked manually, now it is electronically identified and quickly fixed. “The people in the control centre can have a real time view of what’s happening. We are utilising lots of modern smart technologies, like drones that fly above the overhead line with a camera and can pinpoint the problem, and infrared cameras to detect any kind of hotspot. “On-line diagnostics can also pinpoint the site of faults on 100s of kilometre of overhead lines to be within few hundred meters. That really speeds up attendance of any faults and repairs. Delivery of a reliable supply in 2009 saw the achievement of the first objective, says Al Ebrahim. “Now we are in a new phase of optimisation and improving the reliability of the grid, something we cannot compromise on! Also, we are looking to maximise the economic benefits from the connector by developing more opportunities for power trading. Eventually we are looking forward to creating a GCC power market with all six member states participating.” In short, if reliability is the number one thing GCC citizens want from their utilities, cost effectiveness is the next. GCCIA can lead the creation of a common energy market to achieve the lowest-cost generation. A bilateral trading system currently gives countries visibility over capacity in other member states and enables them to place bids using yearly,

Salwa control room

“We are looking forward to creating a GCC power market with all six member states participating” – Ahmed Ali Al-Ebrahim

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Established in 1976 under the name of Saudi Swiss Electro Mechanic Works Co. Ltd. Since its inception in 1976, SSEM has established itself as one of the leading Saudi companies in the turnkey execution of large and diverse construction projects as EPC contractor in power, water, and industrial projects. Classified as Grade 1 for Electrical, Mechanical and Water & Waste Water Projects in addition to 4th in Civil Works by the Saudi Department of Classification Services • Power Generation, Transmission and Distribution for Overhead Transmission Lines, Substations and Underground Cables. • Water Treatment, Transmission and Pumping Stations. • Electrical and Mechanical Services for Industrial, Petrochemical, Commercial and Housing • Operation and Maintenance.

Tel +966-11-4625511 | Fax +966-11-4627804 | Web www.ssem.com.sa | Email ssem@ssem.com.sa

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“Most of the telecoms operators in the GCC are connected with us, and they find our fibre optic network much more reliable than conventional telecom networks” – Ahmed Al-Ebrahim, GCCIA CEO

monthly or daily options. “We are looking to maximise the revenues we make in order to reduce the annual connection fees we currently take from the member states.” That can be done in several ways. Power is not the only commodity the interconnector carries. The network has been built to carry fibre optic cables to enable reliable telecommunications needed for core operations of the grid. GCCIA got permission of telecom regulators in the GCC to lease additional spare fibres to licensed operators for data and telecommunications, and these cables sit at the top of the towers, up to 100 metres above ground and safe from accidental or malicious interference – they haven’t been interrupted since operations began, providing very reliable telecom network for commercial telecom operators. “We contribute to the economy of the GCC by improving telecom services. Most of the telecoms operators in the GCC are connected with us, and they find our fibre optic network much more reliable than conventional telecom networks that are subject to regular interruptions.”

Salwa control room operational management software

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GCC INTERCONNECTION AUTHORITY With the GCC electricity market unified, the next step is energy trading beyond its borders, potentially a big earner. In the past the GCC countries have exchanged small amounts of power with its neighbours, to meet emergency shortages, but in the last three years there have been no trade exchanges whatever. â&#x20AC;&#x153;We are not happy about that and mean to change it! There are huge economic opportunities for the GCC

Electrical engineer onsite at Fadhil

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countries to grab” declares Al Ebrahim. “We intend to develop economic power trading.” There are big savings to be made here, and GCCIA has estimated this market could be worth $27 billion over 25 years. Even with enough domestic generation capacity, a more sophisticated system will ultimately enable countries beyond the GCC to balance energy demand and supply, and at the same time save fuel and reduce the environmental impact of power generation. Energy trading is a long term goal. A more immediate project, currently at the tender stage, is the GCC High Voltage Test Lab being built in the east of Saudi Arabia. “The power utilities have to send equipment overseas for testing after repair or maintenance, which is costly. The lab’s an excellent example of the kind of business opportunity we are seeking, related to our business and with real benefit to the GCC countries, and we are currently 5 percent shareholders.” Energy efficiency is difficult to assess in the GCC, where the market is skewed by varying rates of subsidy. This gets in the way of real economic trading, based on ‘real’ prices. Ahmed Al Ebrahim wants to work towards a fair pricing model that can be used by all and that would really encourage power trading between the GCC nations. January 2016 sees GCCIA’s next Forum which will focus on reforming energy pricing in the GCC.

High voltage tower on the Fadhili site

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ADC Energy Systems is switched on for development Written by: Sheree Hanna Produced by: Richard Thomas

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As a leading Engineering, Construction and Procurement contractor the company is exploring growth opportunities across the GCC and beyond

DC Energy Systems, based in Dubai, is building on its expertise gained over a successful 10 years in business by seeking to grow not only its capabilities, but also its geographical reach. The company, which has reached AED 1.7 billion turnover since its inception in 2005, is a turnkey contractor for Cooling Plants, Energy Services, Grain Handling and Infrastructure. The EPC (Engineering, Construction and Procurement) contractor has been awarded over 20 district cooling plants during that period and is currently working on bringing to completion six plants by the end of 2015 and into the first half of 2016 within the GCC region. ADC built its first district cooling plant for Dubaiâ&#x20AC;&#x2122;s iconic development The Palm Jumeirah, the palm-tree shaped, manmade island, which is home to a number of luxurious hotels and holiday accommodations including the five-star Atlantis Hotel. CEO Ibrahim Sleiman said: â&#x20AC;&#x153;This was the first major project we won through our partnership approach and since then there have been almost 20 projects scattered between Dubai and Abu Dhabi in the United Arab Emirates, and other GCC countries such as Qatar and Saudi Arabia. District data Collectively, to date the district cooling plants generate a total cooling capacity nearing 600,000 tons of refrigeration; its sub-stations are designed

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District Cooling Plant

and equipped for 450MW and its cooling impact may reach up to some 240 million square feet of occupied space. They have a total combined footprint of about 26,000 square metres and serve seven leading utility developers and operators, as well as master developers within the GCC region. With some 200 professionals on board, along with a 350-core construction team, Sleiman explained that ADC is keen to further explore its capabilities throughout its energy services division, and new sectors like Renewable Energy. The forward-thinking company is also looking at how it can further utilise the renewables sector in a

62.5m The amount of Revenue in USD generated by ADC Energy Systems in 2014

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TECHNO STEEL TRADING & CONTRACTING W.L.L Hand in Hand to Achieve Engineering Excellence

All mechanical works in district cooling plant projects Process & uulity piping for oil & gas, petrochemical industries Building services piping - chilled water and fire fighung Structural steel fabricauon and erecuon Compressed air systems Providing project support services for all our specialiues with qualified and expereinced technicians

P.O.Box:

, Doha - Qatar Tel: Fax: Email: info@technosteel.com.qa Website: www.technosteel.com.qa

ADC ENERGY SYSTEMS

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bid to bring greater efficiencies and benefits for not just its customers, but also for the environment. Exciting times are ahead in the GCC region with events such as the World Expo 2020 to be hosted in Dubai and the 2022 FIFA World Cup in Qatar. All of these are opportunities that ADC is keen to exploit and is already involved in, or pitching for the business they are creating. The company is in the finishing stages of completing a new district cooling plant in Qatarâ&#x20AC;&#x2122;s $45 billion, ambitious and ground-breaking new town development of Lusail, which is being purpose-built to cope with the demands the World Cup is expected to generate.

ADC Energy Systems is looking at further opportunities in Jordan, Kuwait and Saudi Arabia to produce the larger 100 megawatt plants

Powering on First and foremost, ADC, building on its wealth of experience in Engineering, Procurement and Construction and as a natural growth from the District Cooling sector, through its Energy Services arm is currently looking at how it can develop Combined Cooling Heating & Power (CCHP) schemes. For this purpose, ADC is targeting industrial and institutional clients whose connectivity to the main grid or need for back-up power in addition to their requirements for comfort or process cooling and heating qualify them as attractive prospects for CCHP schemes. Sleiman said: â&#x20AC;&#x153;District cooling systems are very efficient, but they are intensive power users of the national grid with an average 4050 megawatts per plant. Through the power w w w. a d c e n e r g y s y s t e m s . c o m

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Everything is nothing without water. We keep it safe.

Your global partner for valve & gate solutions. For more than 140 years VAG has been one of the main producers and developers of high quality valves for nearly every application in water and waste water.

For more information please visit us at www.vag-group.com

ENERGY

generation, transmission and distribution cycle, there is a lot of energy wastage with nearly -60 percent of the original energy source lost. “So that is not very efficient and what we want to do with CCHP is to produce the energy where you need it by combining your power generation with your cooling/heating requirements in one plant and optimise the production of the power side by capturing the waste heat wherever you produce power. “By so doing, we can almost increase the effectiveness of the energy source from 35-40 percent up to 75 percent or maybe even higher.” Sleiman was keen to point out that ADC is not pursuing pure power production, but targeting the sector of distributed energy plants which deliver energy at the point of use. Exploring renewables Another strategic focus for the company is the use of renewable energy sources such as solar panels and the company is currently investigating the use of Concentrated Solar Panels. “The reason we still use fossil fuel for our plants is that with solar energy plants you need a lot of space which is hard to find in urban areas,” said Sleiman. “So for now we are concentrating on smaller-scale solar plants. We are looking to participate in an Egyptian set of tenders which will come out shortly, which will range between 20 and 30 megawatts of power production. “We also anticipate to a smaller extent that there

Ibrahim Sleiman - CEO

Khalil Issa - MD

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ADC ENERGY SYSTEMS

Trane has been working with ADC for the past nine years, six of their plants in the AUH use Trane

Trane Middle East & Africa HQ

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ENERGY Qatar’s $45 billion new district cooling plant

will be further opportunities from Jordan and Kuwait, and with Saudi Arabia much larger 100 megawatt plants which we will target in due time. “As a leading and specialised EPC contractor, we are able to team up with international EPC contractors and technology providers to work hand-in-hand on the implementation of such projects.” New frontiers Geographically speaking, ADC has already qualified and participated in tenders as far afield as Algeria to the north and eastwards as far as India and Bangladesh for its grain handling business. Huge infrastructure growth in Saudi Arabia means ADC has its hand firmly on that tiller. Sleiman said: “There is huge opportunity in Saudi at the moment and when you add up all the other GCC countries, Saudi can

“The forwardthinking company is also looking at how it can further utilise the renewables sector in a bid to bring greater efficiencies and benefits for not just its customers, but also for the environment.”

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ADC ENERGY SYSTEMS

The CCHP strategy is a natural outgrowth, from district cooling plants to second generation cooling/thermal energy plants and moving into renewables

equalise if not exceed the development of all of them put together pending more regional stability in terms of security and oil prices. â&#x20AC;&#x153;There are essentially two prongs to our growth, one is expansion horizontally by pushing our CCHP strategy which is a natural outgrowth of our district cooling plants to 222

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second generation cooling/thermal energy plants and moving into renewables. â&#x20AC;&#x153;The second is location wise, expanding beyond our core markets to tackle projects in the wider GCC as well as in North Africa and potentially central African countries, where we are bidding for a few projects right now.â&#x20AC;? w w w. a d c e n e r g y s y s t e m s . c o m

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Well ahead

with Weir

Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Anthony Munatswa

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WEIR OIL & GAS SERVICES

Weir Services’ expertise allows production of oil and gas in some of the world’s most challenging operating environments and the company provide critical components and services to its clients in the Middle East, where low oil prices are not inhibiting its long term strategy

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ne of Scotland’s proudest companies, founded by brothers George and James in 1871, Weir is known around the world for its pumps, and everything that stems from pump and high pressure flow technology, like valves and safety systems in a wide range of industrial applications. Its oil and gas division designs and manufactures pumps and ancillary equipment for global upstream and downstream oil and gas markets, and is a very strong business in the Middle East, which depends so heavily on hydrocarbons for its revenues. The Middle East business, together with Europe, North Africa and the CIS countries has been headed up since 2009 by Managing Director Vikas Handa, who has held senior positions with the group since 1999. “Basically, my territory is the eastern hemisphere,” he says, “though I am based in the UAE and the main focus of my attention is the offices we have in Dubai, Abu Dhabi, Oman, Aberdeen, Azerbaijan, Kazakhstan, Saudi Arabia and Iraq.” The O&G division deals with two main product lines manufactured by the company, he

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The wellhead is a critical point of any well, both from a production and a safety point of view

explains, high pressure pumping (where Weir is the global leader supplying equipment to extract shale gas and tight oil) and wellhead equipment. The wellhead is a critical point of any well, both from a production and a safety point of view. Weir has traditionally led the market in valves and other components, such as blowout preventers (BOPs), however 2012 saw the company make a step change when it acquired the American wellhead manufacturer Seaboard for $675 million. The acquisition was a strategic one, designed to capture the growing fracking market in the States, however this equipment gave Weir, in any case the largest provider of O&G equipment in the Middle East, with significant new capacity. To meet the demand in the local market, it was decided to build a new manufacturing facility at its heart,

1500 Number of employees at Weir oil and gas Services

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WEIR SERVICES UAE, Dubai, JLT, Cluster T, +971 (0) 4 4529802 Iraq, Basra, Al Brathiya, +9647 801099758 E-mail: info@srg-iq.com Web: www.srgme.com

Silk Road Group “SRG” is an oil and gas service company with offices in Basra, Baghdad and Dubai, UAE. Since its establishment in 2004, SRG’s assets have increased rapidly, providing its clients in the energy sector in Iraq with quality and proactive services and support strategies to assist in achieving their business objectives. SRG’s Basra workshop is built over 75,000 sqm in North Rumaila and with the presence of variable skills on site. The group is currently supporting activities and operations in Um Qaser, Zubir Oil Field, Rumaila Oil Field, West Qurna 1 & 2, and Badra. Our services include EPC contracts, installation and fabrication, shutdown activates, consultancy and procurement. Our competitive advantage is to work close with our trusted clients offering tailored services and solutions that are fit-for-purpose to meet our clients’ business objective and targets.

VISION Despite of the current challenging times, SRG is progressing with relentless commitment to safety and quality, unlocking its potential to improve its value to its clients and their strategic growth. 228

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CORE VALUES • • • • •

Safety Creativity Competency Determination Services Oriented

WEIR OIL & GAS SERVICES

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so Weir has built a 250,000 square foot plant in Dubai to manufacture Seaboard wellheads and also Weir’s SPM branded valves and high pressure flow control equipment, delivering them to customers in the region at a competitive cost. The new plant employs more than 300 people, and is staffed by professionals from more than 20 different nations. “It is right at the heart of the marketplace, close to the customer, catering for their needs and meeting their demand for tighter lead times while ensuring the highest quality standards in a trusted product. It is the first such plant in the UAE,” says Handa with apparent pride. Dubai, he adds, is a place which will always attract the best talent.

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WEIR OIL & GAS SERVICES Western India Forgings Pvt. Ltd., Pune, India is one of the Leading forge shops in India with a diversified product range. It is the only forge shop in the country having Close Die, Open Die and Ring Rolled products under one roof and can supply forgings from 1kg to 10,000 kgs. With exports to Europe, North and South America, Middle East and South East Asia, it is catering to the Global needs and meets all the International standards. With API Q1 9th Edition and the 2nd company in the world to be certified for API 20 B and the 7th Company in the world to be certified for API 20 C, it is emerging as a leading quality supplier of Forgings to the Key OEMs and also end user’s in Oil and Gas sector Worldwide. The company also has, • ISO/TS 16949 from TUV NORD • ISO 14001:2004 & OHSAS 18001:2007 from DNV- GL • PED 97/23/EC Annex I Clause 4.3 “under specific assessment of material manufacturer” from DNV-GL • The plant is also approved by American Bureau of Shipping for Marine applications. For Cost effective Forging Solutions, Please visit our website www.westernindiaforgings.com or write to ajindal@westernindiaforgings.com or ssuresh@westernindiaforgings.com

“ We strive to deliver quality, innovation and quick response towards customers’ needs and support services”

Ras Al Khaimah Oil Services & Energy: is an Iraqi company based in Iraq Basra & one branch in UAE, Dubai. We are a global oil field services company constantly evolving, innovating and creating value for our Clients.  We are handling Engineering, Mechanical, Civil and Electrical contracts for the following fields of business: 1. Oil field Infrastructure 2. Gas Plants,Refiners and Petrochemical 3. Oil and Gas pipes, valves and fittings. 4. Constructions.

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Mythem Yousif Managing Partner Iraq Mob : +964 780 160 0008 : +964 770 908 3384 U.A.E Mob : +97150 378 9299 U.A.E Office: +971 4 266 7466 mythem.bosairy@rakoilservices.com

www.rakoilservices.com

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There’s no denying the industry is in a tighter spot than it has ever been, nevertheless this is the best time to make the investment. “We are a new entrant in this market. Seaboard was the fourth largest wellhead manufacturer in North America but had little share in the ME. We are starting from scratch in this market place at a time when everybody is looking for ways to save money, and we can help them do that. The customer focus is on two fronts: who can supply them a quality product in the most cost effective way and who can deliver in the shortest time and give the fastest service? We are already well known for the quality of our service, and that is how we have been growing our business. We have built this plant locally so that we are closer to our customers, can respond in the fastest time, and by manufacturing in the region we can make sure our costs are minimal so we will be cost effective.” It’s Weir’s OEM pedigree that differentiates it and has established it locally. Much more than simply a supplier of product, from its fully equipped local workshops it runs complete maintenance operations and takes on maintenance management projects all the way from the wellhead to the processing plant and power stations for companies like Lukoil, BP, Shell and Adnoc. “Since I joined 16 years ago, our businesses here have grown substantially. Now we are moving into the wellhead pressure market and marketing it strongly in the region. We are making big investments in manufacturing plants

It’s Weir’s OEM pedigree that differentiates it and has established it locally

‘By manufacturing in the region we can make sure our costs are minimal so we will be cost effective’

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Our company is established in Iraq 2005 with its main office in Basra, is one of the leading Iraqi firms in the specialized field of both mechanic electric Engineering services, general trading and contracting, Our company participated in many projects including overland and marine equipment installation and maintenance. Our Projects • Designing Power Distribution Boards • Electric And Plc Controllers • Rehabilitant A Wide Variety Of Cranes

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ENERGY

and growing our capabilities in the region.” Weir has landed major maintenance contracts with all the key players, notably Saudi Aramco, Saudi electric company and the mining concern Maaden in Saudi Arabia and Adnoc, Adco and Adma in the UAE. In Iraq it has long standing maintenance management contracts with Russia’s Lukoil. Last year Weir acquired the Weatherford OCTG threading/ machine shop and inspection business in Basra. The move to the Weatherford purpose-built facility will provide the infrastructure and space it needs to expand these services. “By investing and acquiring the former Weatherford machine shop business and growing our presence in Iraq, we have demonstrated our commitment to the country,” says Handa. It was also in 2014 that the company signed a contract with Lukoil to provide general

Weir has built a 250,000 square foot plant in Dubai to manufacture Seaboard wellheads

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WEIR OIL & GAS SERVICES maintenance services for the West Qurna-2 oilfield in Southern Iraq, one of the largest undeveloped oilfields in the world. The two year agreement, worth a total of $98 million, covers delivery of mechanical, electrical, maintenance and pipeline services for the related production facilities, including the Mishrif Central Processing Plant. Weir invested more than $8 million in establishing its service centre in Basra, Iraq and it is the first in-country location to offer fully comprehensive maintenance services

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for all kinds of rotating equipment, valves and wellheads. The facility was also the first in Iraq to obtain API and ISO licences, he adds. In Iraq 50 percent of the highly committed workforce is local and Weir is investing in improving the country’s engineering skills base. It runs a state of the art training and apprenticeship programme for its own employees and makes it available to its partners. Petroleum Development Oman (PDO) is a case in point: Weir has a contract with PDO to give Omani nationals mechanical and professional training as well as workshop management. “We train them on the job, and that contract went so well that PDO has extended it for the next six years and added 40 people to that training programme. It has been accredited by the ECITB, so we certify those national engineers with a proper vocational engineering qualification.” Capital may be tight, but production needs to be maintained when oil and gas are the main sources of prosperity. “Our strategy is simple,” says Vikas Handa. “We are in this business for the long term. I have seen many downturns in my career though this one is probably the most challenging so far. But we will see it through and there are always opportunities. That’s why we are investing in new products and new facilities, ensuring we can grow market share by being even closer to customers delivering engineering solutions they need, when they need them.

API valve

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Flying high Written by: Lucy Dixon Produced by: Craig Daniels

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HQ in Saudi Arabia

Saudi Arabian Airlines’ ambitious plans for growth would not be possible without an innovative approach to technology

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tarting out with a single airliner back in 1945, Saudi Arabian Airlines has grown to one of the world’s leading airlines, with over 30 million guests served by 45,000 employees in 5,000 locations across 100 destinations. And unlike many other airlines, the national carrier operates around the clock. Codenamed SV2020, the airline has a fiveyear strategic plan that aims to double the fleet size by 2020, grow the airlines’ market share, re-invent its products and services and increase its margins. The strategy was formulated and introduced by Director General Engineer Saleh

TECHNOLOGY

bin Naser Al Jasser - who joined the airlines in late 2014- to transform the company in every sense and to further secure its competitive positon regionally and globally as well. Eng. Al Jasser has started a corporate wide transformation program aimed at turning it from a legacy carrier to a competitive travel provider with second to none products and services. Pivotal to its place on the global stage is the role of information technology. Muhammad Ali Albakri, the companyâ&#x20AC;&#x2122;s CFO and CIO, has been in charge of an enormous overhaul of its IT

Saudi Arabian Airlines aims to double the fleet size by 2020

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SUPPLIER PROFILE

EMC

EMC is a global leader in enabling businesses and service providers to transform their operations and deliver information technology as a service (ITaaS). Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset â&#x20AC;&#x201D; information â&#x20AC;&#x201D; in a more agile, trusted and cost-efficient way. We work with organizations around the world, in every industry, in the public and private sectors, and of every size, from startups to the Fortune Global 500. Our customers include global money center banks and other leading financial services firms, manufacturers, healthcare and life sciences organizations, Internet service and telecommunications providers, airlines and transportation companies, educational institutions, and public-sector agencies. Website: saudi.emc.com

SAUDI ARABIAN AIRLINES

TECHNOLOGY

‘While we put in the new systems, we needed to maintain the old technology, the old network and the old applications, to continue supporting our business. So it was more like changing the wheel or the tire on a Formula 1 car while it’s still racing’

division, as he explains: “We have undertaken a huge programme called the IT Masterplan for Saudia, which lasted from 2007 until 2013. During that time we spent in excess of $1 billion upgrading our entire network inside the Kingdom and internationally. We’ve put in a complete new infrastructure in terms of telecommunications, connecting all our offices around the world to our upgraded data centre, our partners’ data centers, and created a disaster recovery centre as well on the other side of the country. We have created a modern IT base and implemented a converged network for data, voice and video, serving all the locations, all the offices, all our operations for the airlines and the other sister companies in Saudia Group as well.” And while all this was taking place it was, of w w w. s a u d i a i r l i n e s . c o m

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All seats are equipped with special monitors that may reach up to 23â&#x20AC;? in some aircrafts. A remote control will provide you with complete flexibility for your personal entertainment during the trip.

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Sabre Airline Solutions Gives You The Freedom To Fly The Way You Want Sabre is proud to be a leading technology partner for Saudi Arabian Airlines, with many years of successful partnership. Sabreâ&#x20AC;&#x2122;s technology is powering the business of Saudia in Sabre Airline Solutions and the Sabre Airline Solutions logo are trademarks and / or service marks of an affiliate of Sabre.ÂŠ2015 Sabre Inc. All rights reserved. 10140 0915

commercial and operational areas and is helping Saudia better market and sell its products, provide superior service to its customers and stakeholders and conduct its operations in the most effective way. We look forward to continuing to serve the needs of Saudia and support its continued growth and success as a leading carrier in the Middle East and the world.

SAUDI ARABIAN AIRLINES

TECHNOLOGY

course, paramount that Saudia’s customers received the same fantastic service they were used to. Albakri says: “We replaced about 480 different enterprize application systems and while we put in the new platforms, we needed to maintain the old technology, the old network and the old applications, to continue supporting our business. So it was more like changing the wheel or the tyre on a Formula 1 car while it’s still racing!” It was a particularly complex undertaking never tried on that scale before in the aviation industry as the airline doesn’t have any down time, unlike European and American airlines which have night curfews. “We operate 24/7, which is a unique business model in aviation. Because of the diversity and the size of the Kingdom, and the amount of guests that we

The new luxurious interior of the Boeing 777 for optimum guest convenience

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S U P P LY C H A I N

carry and the extent of our domestic networks, we have to carry on operating around the clock to be able to meet the demand.” Time wasn’t the only challenge for Albakri’s team in implementing such an ambitious upgrade. At the same time as integrating all the new platforms, Saudia also decided to restructure the entire IT division. He explains: “We set it up as a shared service provider for Saudia Group, so we reorganised and restructured the entire organisation. We acquired all the niche technical skills and competencies we needed to have this division really perform its activity as a shared service provider based on servicelevel agreements with the various business units. So by transforming IT, not only from a

‘Innovation requires time, investment and patience. You cannot consider it as a project; you’ve got to let these people have their own time’ Saleh bin Naser Al Jasser, Director General Engineer

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Clear skies ahead Enhancing the customer experience while improving profitability is the goal of every airline around world. That’s why today’s visionary flight operators like Saudi Arabian Airlines partner with Jeppesen to deploy the latest technologies into their operations. We thank Saudi Arabian Airlines for their unwavering partnership on this journey toward innovation. We wish them only clear skies and tailwinds.

Boeing Commercial Aviation Services partners with airlines around the world to provide them a competitive edge by solving real operational problems, enabling better decisions, maximizing efficiency and improving environmental performance – creating intelligent information solutions across the aviation ecosystem. Jeppesen is a Boeing company.

TECHNOLOGY

Loyalty lounge for business and first class guests

technology point of view but also the business model, we managed to set the division up to become a commercial provider for the group.” But technology does not sit still, Albakri acknowledges, so the transformation within the IT division is ongoing. “In our business we finish one cycle and then have to start another one,” he laughs. “Technology changes and trends change. And making ends meet in an airline is really very challenging so we can’t afford to have IT be a major cost contributor to the operating costs, so we continuously look for ways to improve our efficiency and improve our costs and deliver better products, and advanced products to enhance our guests experiences, improve our products and services, increase our revenues, optimize our operating costs

$$$ Saudia spent hundreds of millions of dollars upgrading its entire IT infrastructure

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SITA IS THE WORLD’S LEADING SPECIALIST IN AIR TRANSPORT COMMUNICATIONS AND INFORMATION TECHNOLOGY Airlines, airports, aircraft, ground handlers, governments, air cargo, aerospace, air navigation service providers and international organizations all use our information and communication technology (ICT) solutions, relying on SITA’s expertise to keep the wheels of the industry in motion.

INNOVATION Community Innovations AIRCOM Flight Tracker ATI Cloud iTravel Mobile App eAircraft Services

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Tel +41 22 747 6000 Fax +41 22 747 6110 Web www.sita.aero E-mail info@sita.aero – info.meia@sita.aero

SAUDI ARABIAN AIRLINES

TECHNOLOGY

and add true business values to the airlines.” And employing the right staff is a big part of delivering this, from attracting bright young minds to providing the appropriate training. Albakri says: “First of all, you have to create the ecosystem for it, you have to acquire the young educated minds, inspire them and create the environment so they could really come up with innovative solutions.” This is assisted by partnerships with our strategic technology partners so that Saudia can take the latest and greatest technological breakthroughs (i.e disruptive technologies) and see how could they be applied to the business. “Innovation requires time, investment and patience. You cannot consider it as a project; you’ve got to let these people have their own time. You have to let them think. So we attract

Muhammad Ali Albakri - CIO and CFO

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Over 750 professionals of culturally aware workforce

Successfully delivering complex and large scale IT projects to over 150 enterprises

2nd largest IT Services and Solutions company in the Saudi Market

6 offices and a network of various channel partners covering the rest of the region

EJADA is a leading IT services & solutions provider in the Middle East & North Africa enabling enterprises in banking and finance, telecommunication, transportation, health, government and oil and gas sectors to maintain their competitive edge in todayâ&#x20AC;&#x2122;s dynamic market.

Tel +966 (11) 4722277 | Fax +966 (11) 4724772 info@ejada.com | www.ejada.com Head Office, Riyadh, Saudi Arabia, P.O. Box 55471, Riyadh 11534

SAUDI ARABIAN AIRLINES

STUEPCPHL N Y OCLHOAGI N Y

the best and the brightest from universities from within and outside the Kingdom and we put them through very generous training programmes, some of them extend to two to three years, and we provide them with the necessarily environment to be able to produce and be contributing members of the Saudi Arabian Airlines Group.” And these opportunities are not restricted to male employees, as Albakri explains: “We made the decision about eight or nine years ago really to introduce more and more women into our workforce in IT. For instance, our SAP Centre of Excellence is half staffed by young Saudi ladies who have been trained and certified to work with SAP technologies, our entire IT helpdesk is now run by women. And we are expanding our team for mobile and tablet development, with a large number of female staff.” The brightest staff – men and women – are recruited and retained by this impressive approach to staff development, says Albakri. “The benefits that we offer, the continuous training, the challenges and exciting types of programmes or projects that they are involved on really makes the job very attractive for them to

‘We made the decision about eight or nine years ago to introduce more and more women into our workforce in IT’

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AIRPORT TECHNOLOGY INTEGRATORS FOR THE 21st CENTURY OUR SERVICES

ABOUT US ICAD is the leading provider of airport integration services in the Middle East. Our areas of expertise include: Information and Communication Technology Systems, Passenger Processing Systems, Air Traffic Control Systems, Security and Safety Systems, Special and Ancillary Systems, Building Controls and Automation Systems, Lighting Systems, and Passenger Boarding Systems.

With our highly expertise team we are proficient of delivering the even most complex multiple-system and multiple-vendor installations with the best competitive edge technology requirements to a highest level of standars and expectations starting from engineering, design, installation, commissioning, operation and including maintenance. With our sophisticated in house testing and pre-staging facilities before on site installation and integration, we maintain our reputation by completing the projects on schedule.

ICAD Headquarters | Sary Road and Khalidiya Street | Building Jeddah 101, Floor 7 | PO Box Jeddah 117188 | Jeddah, KSA-21391 www.icad.com Telephone: +966-12-616-6771 Fax: +966-12-616-6773 E-mail: info@icad.com

Amadeus is a world-class technology company dedicated to the global travel industry

Amadeus provides the technology which keeps the travel sector moving. Our ambition is to facilitate the entire travel journey from door-to-door and in the process improve the travel experience for hundreds of millions of people every year.

Let's shape the future of travel

We are proud and honoured to be Saudi Arabian Airlines’ main strategic partner for airline IT and distribution services. Amongst other key IT Amadeus solutions, Saudia is using the Amadeus e-Retail online airline booking system, the world’s most widely-used airline Internet booking engine, as well as the Amadeus Altéa Suite, a complete Passenger Service System that offers full reservation, inventory and departure control capabilities.

You can follow us on:

AmadeusITGroup amadeus.com

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Our people, technology and innovation are dedicated to working with our customers and partners to shape the future of travel.

SAUDI ARABIAN AIRLINES

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stay on, and we of course do everything possible in our ability to make the job more like a career choice, to nurture their skills, and satisfies their personal development goals thereby securing a more productive and stable workforce..” A talented and committed workforce means that Saudia is well positioned to achieve its plans for growth. And to kick things off, the airline has acquired 50 additional new aircrafts to strengthen its domestic and regional capabilities and added more wide body aircrafts for the long haul routes (i.e. Boeing 777-300 & Boeing 787-9). Saudia will be taking its first delivery of the Dreamliner in January 2016 at the same time as celebrating its 70th anniversary. Albakri says: “The aviation business is continuously changing and the Dreamliner is a very sophisticated aircraft. We call it a flying data centre actually by itself as it has more technology embedded into that aircraft than any other aircraft made by mankind.” So, naturally, the role of IT has extended to accommodate such an aircraft, in order to take full advantage of it and ensure proper operation, maintenance and support of the aircraft and its guests. He continues: “The Dreamliner is continuously connected to ground based systems, it’s continuously communicating the status of the engine, the status of the various components of the aircraft, to the ground systems to monitor and advise crews with information to help operate the aircraft more safely and with added conveniences to its guests. And then it

The interior of the Boeing 777

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SAUDI ARABIAN AIRLINES Logopdf.pdf

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SAP is the world leader in enterprise applications in terms of software and softwarerelated service revenue. Based on market capitalization, we are the world’s third largest independent software manufacturer. SAP has more than 263,000 customers in 188 countries and more than 68,800 employees – and locations in more than 130 countries. SAP Middle East and North Africa (MENA) is recognized as one of the fastest growing markets for SAP globally and is a key investment area for the company. It has a complete portfolio of business solutions from ERP to Analytics and from Business Intellegence to Mobility and now moving everything into the cloud. Today, the company has more than 1200+ customers and continues to build capacity across the eco system with more than 1400 qualiﬁed SAP consultants and 132 business partners to support. For more information please visit our website www.sap.com/MENA or email us at info.mena@sap.com

IT Services Business Solutions Consulting

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S U P P LY C H A I N

is providing additional services that couldn’t be provided before, to guests, such as continuous connectivity to the internet, continuous ability to use their own devices and favourite content. There is a lot of sophisticated technology that this type of fleet is bringing with it, and we have upgraded our capabilities to work with it aiming to enhance our guests’ experiences .” The Dreamliner will be used on Saudia’s long haul routes, to Europe and Canada, and some of the Far East destinations will be supported as well. And it is just one of 110 new aircraft that will be integrated into operations totally by 2020 - 28 of those new aircraft will be received in one year – 2016. Such growth is needed for the airline to reach the 50 million guest goal by 2020. Albakri says: “The region where we exist and we operate

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Saudia Guests Services Center (CTO)

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is the fastest growing region so far as aviation is concerned, the largest number of ordered aircraft worldwide is coming from the region, the largest percentage growth of airlines in the world is happening in the region, the largest travel hubs exist in the region such as King Khalid International Airport (KKIA) and King Abdulaziz International Airport (KAIA) both of which are going through massive upgrades by adding new terminals to KKIA and totally rebuilding KAIA. So we exist in a very blessed region in terms of the business, in terms of growth, but also it comes with a very heated competition. So we have to

TECHNOLOGY

“The region where we exist and we operate is the fastest growing region so far as aviation is concerned”

continuously renew and advance our products and services and make sure that we stay as close as possible to our guest expectations, to be able to grow and capture our market share.” And none of this would be possible without the right infrastructure, as Albakri concludes: “Nothing would be possible really without having the right intelligence systems to be able to turn the company around very fast and enable it to absorb that many new aircraft and doubling the number of guests in a short period of time. It just would not be possible without the right technology in place.” w w w. s a u d i a i r l i n e s . c o m

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Seeds for the future Written by Lucy Dixon Produced by Mark Atkinson

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Starting off 60 years ago creating sesame seed products, Halwani Bros has grown into a market leading food producer, which has just invested in a new state-of-the-art manufacturing facility

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hen Saleh Hefni joined Halwani Bros in 2007, he had three strategic objectives as CEO of the Saudi Arabian food producer. “First was to take the company into the stock market and we were able to do so in 2008. The second objective was to build a state-of-theart manufacturing facility, which we started in 2009 and we’re wrapping up right now to move to the new site. The third objective was to increase revenue to two billion Saudi riyal by 2013, with a mixture of organic growth and acquisition.” And although Hefni has achieved much of what he set out to do, he recognises that there is much more in store for Halwani Bros, a company that started as a family business almost 60 years ago. “Objectives and goals are always changing, the minute you achieve one you look at something

M A N U FA C T U R I N G

else. Now we are looking at what will be next – the new generation of Halwani, the new products that can attract the new generation,” he says. As the name suggests, Halwani Bros was started as a business by four brothers and has evolved so that it is now a publically listed company – 30 percent owned by the public and 70 percent divided between the Halwani family (15 percent) and Aseer Co. (55 percent) partially owned by the Dallah Group. It is market leader for a huge range of nearly 350 products among six categories – meats, pastries (maamoul), jam, tahini, halawa (a sweet product made out of sesame seeds) and the final category is olives, olive oil, sauces. It also offers cheese, juices and ice cream. Hefni says: “Currently 80 percent of our business is in the local market and 20 percent

2,700 Number of employees at Halwani Brothers

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is exported. Yemen, GCC and Egypt are our largest export markets. We export the maamoul, the halawa and the tahini, but the meat products we basically sell only in the local market.” Hefni explains that with the addition of the new manufacturing facilities, Halwani Bros will be able to significantly increase these exports. He says: “One of the nice problems we had in the past six or seven years is that we were running at the maximum capacities in our

M A N U FA C T U R I N G

manufacturing facilities and we did not really have a way to increase so we could export more into the international market.â&#x20AC;? These constraints will be history on the opening of the new factories. â&#x20AC;&#x153;We have been building nine state-of-the-art factories and the final two will be operating soon. This will give us extra capacity to open up more international markets such as the US, Europe, Canada and the Far East. By having that extra capacity we will be

VP, Fawaz Halwani

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CFO, Ayman Sayed

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able to penetrate strongly into the international market and increase our sales,” Hefni says. The company has invested 350 million Saudi riyal (over 100 million USD) in the new facilities, ensuring they are leaders in their field. “It’s an industrial complex, not just one factory. There is a state-of-the-art firefighting system. New technology in terms of equipment processes and machineries, storage facilities, utilities and support of the utilities. The whole site has been run into a very high international standard and has been designed by an Irish company specialised in food manufacturing design, with excellent project management experience.” To find the right

M A N U FA C T U R I N G

partner for this project Halwani Bros thoroughly researched potential companies. Hefni adds: “We scanned the market and looked at companies that had previous experience in designing and building food manufacturing facilities around the world. We hand-picked the best contractors to do the work.” Halwani Bros has two manufacturing locations – one in Saudi Arabia that consists of nine factories and one in Egypt with five factories, with a combined total of around 2,700 staff. And sourcing the right staff can be challenging, Hefni says. “Finding talent these days is becoming difficult in our region and it’s not because of salaries. What we are doing right now is, of course, looking at the market, the wages, the

“We scanned the market and looked at companies that had previous experience in designing and building food manufacturing facilities” – Saleh Hefni, CEO

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Export Manager, Ghassan Habhab

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benefits and the work environment we provide. We look at the training and development, the horizontal integration and the vertical promotions of staff, and we put it all in together to try to give the best market package. We give them a future plan to grow within in the company within the next five to ten years. This approach opens up opportunities for us to find talent.â&#x20AC;? A consistently high quality of product is guaranteed by the Halwani Brosâ&#x20AC;&#x2122; name and this is partly achieved by its supply chain, which includes many long-standing relationships that have been built up over the years. â&#x20AC;&#x153;Our supply of main raw materials is very important. We import our meat from Brazil and Argentina and some of our dairy and cheese products come from

M A N U FA C T U R I N G

New Zealand. Sesame is a major part of our raw material that we import from Sudan.” In the past few years, says Hefni, the market has seen new, inferior products arrive on the scene. “Halwani Bros always maintains high quality, regardless of the drop of the margin. Regardless of a cost increase in raw materials, we always maintain the high quality of our products in the market.” He believes the secret to maintaining this high quality is a combination of the company’s culture, choosing the best raw materials and its manufacturing process. “We have our own processes and technical know-how that we have built over the years. We utilise this to make sure we continue introducing the best quality products.” To highlight this, w w w. h a l w a n i . c o m

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Maamoul forming

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Halwani Bros has both ISO 9001 and HACCP accreditation, which is vital for exports. To make sure it stays on top of the game, Halwani Bros attends several global exhibitions every year, including Gulfood, London’s International Food and Drink Event and Anuga. “Trade conferenes are extremely important for us. We look at new products, new technologies and new equipments that are available in the market. We try to benchmark ourselves against other companies to see how far we are from getting there or to see if we are on top of certain issues. It is very important that we meet our suppliers at these events and we look at diversity in our suppliers as well,” says Hefni, adding that connecting with clients is also key. “We always meet with them and try

M A N U FA C T U R I N G

to understand their needs and wants. And trying to understand the business cycles because whatever is affecting their business will always affect our business and vice versa.” So, as Halwani Bros approaches its 60th birthday, Hefni is confident a period of growth lies ahead. “We see that the company can grow heavily in the next five years due to our investment in increasing capacity. If you look at the history for the past five years, we were able to increase our sales from 350 million Saudi riyal into nearly 1.2 billion Saudi riyal, which has been done by increasing sales and widening our portfolio. We believe this process can continue. We will also look at companies in the market that we can acquire that can increase our portfolio and increase our sales.”

“We were able to increase our sales from 350 million Saudi riyal into nearly 1.2 billion Saudi riyal, by increasing sales and widening our portfolio” – Saleh Hefni, CEO

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LEADERS IN THE BALKANS Written by Lucy Dixon Produced by James Pepper

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MINECO

Mineco’s operations have helped to revitalise the industry in the Balkans, a region with a rich history of mining

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tarting off as a commodity trading company in 2003, Mineco soon expanded its operation into base metal mining and the smelting and refining of metals. It currently has three lead and zinc mines in Bosnia and Serbia – Gross, Rudnik and Veliki Majdan – with a further two projects under development. In Russia, Mineco owns the largest lead refinery in the country. The Balkans has a rich history of mining; mines opened by Romans in the 2nd and 3rd Centuries AD still operate in Artana and the Saxons mined extensively across the region (locally, Gross is known as ‘Sase’ in recognition of its origins as a 14th Century mine). Modern, industrialised mining was started by the Austrians and by the 20th

MINING

Century the copper mines of Bor in Serbia and the Trepca lead complex in what is now Kosovo were among the largest operations of their kind in Europe. However this proud tradition of mining was dramatically interrupted by the breakup of Yugoslavia, the ensuing civil war and international economic sanctions, as Mineco’s Operations Director Dominic Roberts explains: “Unfortunately the ramifications of the civil war in the early 1990s are still felt today in many areas. All of our mines suffered to some extent in the war, particularly Gross and Veliki Majdan. Gross, for example, stopped production in 1990, it did restart in 1998 but by the time we acquired it in 2005 it was in a terrible state of repair and was running at a fraction of its capacity.” The mine is located in the Srebrenica district of Bosnia, near the Drina river. “We are the largest employers in Srebrenica with 530 people working at Gross mine and the established convention in mining is for every one direct job, you create four indirect jobs. We are effectively responsible for two and a half thousand livelihoods in a very small community and our local position is amplified by the absence of the other large employers that operated during Yugoslav times. Moreover, Gross is a model of corporate social responsibility, providing valuable support to local educational, sporting, cultural, environmental and social programmes and events. All this has generated a strong sense of pride among the staff and management of Gross and Mineco as a whole,” Roberts says. This is w w w. m i n e c o g r o u p . c o m

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Peacocke & Simpson: processing excellence Peacocke & Simpson is an industryleading full service minerals processing solutions company. Specialists in mineral testwork, the company also offers flowsheet development, and laboratory analyses of mine samples, and represents various world-leading process equipment manufacturers. â&#x20AC;&#x153;Established in 1985, Peacocke & Simpson has vast experience in the minerals processing industry, providing RELEVANT and MEANINGFUL mineral testwork on nearly all hydrometallurgical processes for nearly all minerals. Based in mineral-rich yet underdeveloped and logistically challenging Africa, we understand that our clients require practical solutions and results, as opposed to laboratory print-outs and irrelevant research.â&#x20AC;? MINERAL TESTWORK P&S places emphasis on gravity recovery, and always explores this as a first option, when viable. In addition to being more environmentally friendly and sustainable, gravity recovery is more economical than applying costly chemistry to the mineral recovery process, and generally has a much smaller footprint and power requirement. When chemical recovery is necessary, P&S has state of the art equipment and expertise to conduct leaching, flotation and other chemical testing procedures to the highest quality. This is either done independently, in comparison with gravity recovery, or as a peripheral or downstream

process with gravity recovery, depending on the needs of each individual client. P&S pride themselves on extremely fast testwork turnaround times. Committed to client service and adding value, P&S manages everything from sample collection from site, through testwork and flowsheet development, and finally delivery/disposal of testwork byproducts - subject to the preference of each client. As part of its dedication to industry growth, the company also offers discounts on routine testwork performed for plants, ensuring that they run at optimal levels at all times. FLOWSHEET DEVELOPMENT Whether for new plants or those that have been going for decades, P&S develops flowsheets to streamline the mineral extraction process. This not only enhances overall recovery, but also minimises risk on site. EQUIPMENT REPRESENTATION P&S is the proud official testwork partner for FLSmidth (Knelson Technologies), APT, ConSep and Rocklabs, in addition to being able to test for numerous other technologies and mineral extraction processes. As the partner of these companies, Peacocke & Simpson is the best choice and most suited to perform mineral testwork for any processes which may require the above technologies. Peacocke & Simpson is ISO 9001:2008 certified and SANAS accredited.

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a big part of Mineco’s role at all of its projects – initially stabilising operations, followed by a programme of investment and modernisation to realise full capacity while becoming an important part of the local economy and community. Roberts explains: “There is nothing we take more seriously than our commitment to our key stakeholders, the communities and environments which we serve.” Across its projects Mineco works hard to improve the environmental and social aspects of its operations. Gross mine has become a regional centre of best environmental and waste management practice. A recently completed $2 million investment programme has ensured the tailings dam not only meets local legislative requirements but those of the voluntary Equator Principles set by the IFC & World Bank. Earlier in the year the mine hosted the first environmental and waste management conference held in the Balkans for over 20 years. “We continue to focus on improving the health and safety conditions at all our mines,” explains Roberts. “Continuing the model of creating centres of best practice, our Rudnik mine in Serbia is similarly a regional example of excellence. Serving as a training centre for Mineco’s staff as well as a case study for the wider industry. The General Manager of the mine advises the Government of Serbia on all matters relating to metal mining, but particularly on matters concerning occupational health and safety. An impressive achievement when you w w w. m i n e c o g r o u p . c o m

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APT, bringing projects online in lean times More than ever before the hurdles necessary to bring a new project on line, or to expand an existing one are daunting. Listed Juniors deserve a medal for their efforts and a good deal of recognition is owed for the often thankless task. There are many boxes to be checked, one of which is the plant; its design, its cost and the efficacy of the result. Nothing endorses a project more firmly to its investors than production on schedule, or even ahead of schedule.

proven capability to a larger plant size. Our latest plant, at 120tph capacity is in fact a Combo Plant and clearly demonstrates APT’s specialist knowledge in this field. Large engineering companies frequently encounter difficulty designing their products downwards, it is not as easy as it sounds. APT on the other hand has had no trouble engineering upwards and we come from a broad base of experience of over eighty plants to grow from.

Ultra-fast lead times APT realizes this and our plants have been brought into production for small to medium mines at literally break neck speed. For example, a 20tph gold plant was recently designed and built in just 14 weeks. It was then shipped to site and once there was erected, commissioned and in production in just 4 days! In another case a large 40tph gravity tower for gold recovery was erected on site in just 6 days! Through rigorous R&D our designs have been evolved to allow for a single plant that can treat the softer upper oxide material and then accommodate more competent rock from the transition and deeper levels. Called Combo Plants, these units can accept up to 50% of the feed tonnage as hard competent rock and are ideal for a startup. Modules can be added as necessary to tailor the plant progressively to a deep level unit, for example by the addition of flotation and cyanidation.

Scheematic of 120tph APT Combo plant for cassiterite recovery Exploration with production The ability now exists for a Junior Mining House or a private investor to bring a project on line at reasonable cost ahead of schedule whilst reserves are expanded to justify further investment. APT would be involved throughout the entire process from testwork through to implementation of the final modules as the project matures. This can all be designed from the outset for ease of forecasting and financial planning. Low CAPEX and OPEX

40tph Gravity Tower and CIL plant Modules allow progressive expansion The breakthrough for the Juniors is that APT have progressively expanded this tried and

In addition to the flexibility of the solution and it’s rapid startup, the value package is enhanced further by very competitive pricing – often a fraction of that paid for a conventional plant. “The reason is simple”, said Gary McFarlane, APT’s Business Development Manager. “We spend a large proportion of our engineering effort to de-complicate and unclutter our solutions so that what the client gets is a smart, robust product without bloat and waste.”

MINECO LIMITED

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consider we are in a region where records haven’t traditionally been very good. Unfortunately, I am afraid, senior managers don’t readily accept responsibility for health and safety issues so we’ve endeavored to change the culture and ensure that our managers understand that they are absolutely responsible, ultimately culpable and that the protection of the workers should come foremost in their day-to-day planning. It is also very rewarding to prove that with improved health and safety, productivity also increases through the decreased downtime associated with accidents,” Roberts concludes. It’s worth noting that 99 percent of Mineco’s staff are locals, taking advantage of the region’s specialisms that existed before the war. Roberts says: “Yugoslavia had an enviable reputation for academic excellence. The education and university system produced some very, very good engineers. The issue is that, again due to the breakup and the civil war, a lot of that experience was lost in the consequent diaspora. The engineers that stayed unfortunately lost access to at least a decade of technological advances by the rest of the mining world.” Mineco is working hard to modernise its operations wherever practical,

The Balkans has a rich history of mining

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MINECO ensuring they will comply with international best practice and educating its workforce on the technical advancements that have been made around the world. This goes hand in hand with the long-standing recognition within Mineco that its employees are, in fact, its most important natural resource, being ultimately responsible for the group’s growth and successes. The new projects that Mineco is working on are also in the Balkans, and it’s a part of the world Roberts knows quite well, having worked there firstly in the army, and then using his geology degree and project management skills in the mining industry. And it’s an area that still has enormous potential when it comes to base metal mining. “We are Balkans specialists. It’s our part of the world. We know it and we understand it. There are still opportunities remaining in the

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Balkans as it is such a heavily mineralised area, however very few of the mineral deposits are of a scale or size that any of the major mining companies would consider. For us, it is the ideal market for a mid-cap, mediumsized company to operate and expand.” Because of its complex political history, the region contains a number of brownfield sites that are still in public ownership, awaiting privatisation and regeneration. Roberts adds: “There are all sorts of legacy issues we have to deal with, but we know them and can navigate around them - that is one of our USPs. To a certain extent, it puts off the potential competition. They look at the perceived political and sovereign risks and are not prepared to take those on. Especially in mining, a sector that requires both long-term commitment and substantial investment. We

‘“We are Balkans specialists. It’s our part of the world. We know it and we understand it.” – Dominic Roberts, Operations Director

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MINECO feel confident to operate in a market where a lot of other people perhaps wouldn’t.” The same perception has caused many international banks to stay away from providing mining and project finance, so mining companies need to rely heavily on their own resources. Ironically, this has only helped Mineco to achieve organic growth as it has had to re-invest the bulk of its profits into developing new projects. Mineco’s next mine is Olovo in Bosnia, which is scheduled to open in July next year. “Olovo is a very interesting prospect. Unlike our other mines it is not a polymetallic sulphide deposit but rather a rare form of secondary mineralisation called cerussite that contains only lead. Olovo is a relatively small mine but its reserves of 1.7 million tonnes are very high grade. Its full operating capacity, in 2017, will be

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150,000 tonnes a year,” says Roberts. Olovo is another particular good example of a refurbishing a mine that was abandoned during the war, standing inactive since 1991. But while there is nothing left on the surface, the underground workings remain. “We’ve finished rehabilitating all the underground systems and we’re now in the final permitting stage for the surface infrastructure,” says Roberts. The mine will go on to employ around 200 people and bring substantial direct and indirect revenues to a community with extremely high unemployment. Another development project is located in Bosilegrad, which is a lead and zinc ore body located in the south east of Serbia. “At Bosilegrad we have over four million tonnes of resources and we’re currently undertaking all of the test work to design the processing plant,” says

“There is nothing we take more seriously than our commitment to our key stakeholders, the communities and environments which we serve” – Dominic Roberts, Operations Director

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“We are continuously conducting due diligence on other potential projects. And to do this we operate an inhouse team that we call the Project Delivery Team” – Dominic Roberts, Operations Director

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Roberts. Having already invested in excess of $11 million, production is planned to start in 2017 following a pilot plant next summer, which will be used to confirm the technical specifications of the full project. “ßAt approximately 1,400m above sea level, this high altitude mine sits in a very remote community in the mountains between Bulgaria, Serbia and Macedonia. Unofficial unemployment is currently over 50 percent so, as with Olovo, the commissioning of this mine will make a substantial difference to the local community, where we intend to employ about 250 people,” Roberts adds. There are also two exploration projects underway, both in Bosnia. Roberts says: “The first near Gorazde – an antimony exploration project - and the second in Celebici, near Foca. As mentioned already, from our perspective in the Balkans, we don’t need to commit to greenfield explorations, because there’s such a complex history of mining enabling us to focus on brownfield opportunities. The Gorazde project is an adandoned mine and Celebici is the potential extension of an existing mine.” Roberts adds: “We are continuously conducting due

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diligence on other potential projects. And to do this we operate an in-house team that we call the PDT - the Project Delivery Team. A handpicked team of geologists and mining engineers who review and develop new projects for Mineco.” The 15-member PDT operates from Belgrade and assists Roberts in evaluating potential new projects and developing those that get the green light. It is another element of Mineco that illustrates its specialism model. “The PDT is another internal centre of excellence. While the team are all locally recruited, in keeping with our employment philosophy, they have all worked internationally at some stage in their career and been exposed to best practice

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“Our Rudnik mine in Serbia is a regional example of health and safety excellence, serving as a training centre for all of Mineco’s staff as well as a case study for the wider industry” – Dominic Roberts, Operations Director

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and different forms of mineralisation and mining across the world.” Away from the mining operations Mineco continues its global trading activity. From its London, Zug and Moscow offices, Mineco markets not only its own concentrates, but also the output of a number of other mines in the Balkan region and across Europe and the CIS countries. Through a strategic alliance with the international commodities house, Ocean Partners, Mineco maintains a global trading presence. Completing its vertical integration Mineco owns and operates the Fregat secondary lead smelter. Located in the Moscow region, it recently became the first Russian smelter to achieve registration of its products with the London Metal Exchange. “With the capacity to recycle 170,000 tons of batteries per year and currently producing some 35,000 tons of prime lead metal, it is the largest lead refinery in the whole of Russia – something everyone in Mineco is very proud of,” says Roberts. Summing up, Roberts says: “Mineco is privately owned, with no external debt, a robust balance sheet and we enjoy healthy margins at our producing mines. We are ideally placed to take advantage of the opportunities that will present themselves over the coming couple of years. Investors reinforce their successes, and I am very confident that we will increase annual production by at least 50 percent over the next three years”.

The Fregat Smelter is one of the most modern secondary lead smelters in the Russian Federation

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Reason says: invest now to grow.

Instinct says: manage the current risks and challenges.

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